14-00000

104-10187-10014) | 2025 RELEASE UNDER THE PRESIDENT JOHN F. KENNEDY ASSASSINATION RECORDS ACT OF 1992 |

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LIEMPTY 4, |
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REY: MEXI 1307 (IN osooe)s Teas ‘

1.* HDQS AGREES IN PRIKCIPLE THAT LIMITED BLDG BHOULD BS RAZED
naraer THAN axrchen, YOUR PARA THREE PROPOGAL OF COMMERCIAL INCOUE
NETTING VENTURE WOULD IMMEDIATELY MARE THIG ASPECT OF LIEMPTY A
PROPRIETARY Ws ATTENDANT SPECIAL ADMIN HANDLING, UMLRBS THERE ARE
‘OVERRIDINO SECURITY AND OPS CONSIDERATIQNS WE PREVER ROT DOTHIB,
BOWRVER IF FINAL DECISION 18 TO BUILD STORE AND TWO APARTURUTS, HDQS
SUGGESTS LIMITED BS HADES SEPARATE (FROM LIEMPIY) PROPRIETARY SUPPORT
PROJ IN ORDER REDUCE conrusrox OF THO TYPES ACCOUNTING URDER ONE PROJ.

2. HDQS STRONGLY BELIRVES PREFERABLE SOLUTION WOULD B® MERELY
REBUILD HOUSE ON SAME | LAND FOR OCCUPANCY BASEROUSE ; xEEPERS THIS WILL
, . ROP INVOLVE PROPRIETARY. ALSO WOULD BE 5, HORE SECURE YRC STANDPOINT t

th
' '

tae teal hen #) atinatne War" ses mmnerferrm memeneeants mies nie ae gee
xvOonN =
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fat
- ss

: ' SOV COUNTERMEASURES. |

3, ALTERNATE SOLUTION 18 SYLL LIMITED PROPERTY TO Laman ar 0
FAIR MARKET VALU DETERMINED BY LNDRPEDESET APPRAIGAL WITH UNDERSTANDING 1
HE BUILD AN APARTURNT ON SECOND ¥LOOR WHICH BE WILL LET ua CH LORG TRAM

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4. SUEPRIVTS FOR ANY BOTLDING TO HE CONOTRICTED WITH STRARR
FUNDS MUST RECEIVE HDQS APPROVAL. HIS APPROVAL AND PROT AMNineDOrT
MUST BR OBTAINED PaIOR TO ANY COMMITMENT? FUNDS. BSPIMATED FINS FOR
TOTAL APPROVAL AFTER RECEIPT PLANS 18 RUPSVULLY TWO WOSTHD, B33 mOUaE

GOULD HOT BH BAKED UWL APPROVAL GRAFTED, Some tale pt
foe oat a hohe ees A ee (He evos et
Ag § ah,

re a BND OF HMSIAOR | oe a a

: a Comment! SLISITED photo basehouse which vo pirehased iaesibs deteriore:
oo a Sting and Station suggests fase building sed rebgild with |
» be we ee GtORe. eB lat. fleer and two ‘spte upstairs as seas of ! 986.000, :

SE: rt a ve ion Beret ‘ep ped ae

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or _ oN . _-
aSSIFIED tL PITERMAL * 0) COnFIDZ71at Bx] secre

ROUTING AND RECORD SHEET

"26 April 1973
Oraw © Ine across colymn otter each och comment)

FY 12 Fungs AVAILABLE

: “Oriana

C/WH/1

WH/B&F

—_C/WH/FI

_C/WH/Plans_

A cywup

MPS/BG/FI

WH/1

Cy CONFIDENTIAL =) (MIERMAL UNCLASSIFIED

FORM

sor 610 “totes BS SECRET


14-0000

SECRET ~™

“ PROJECT APPROVAL NOTIFICATION

re0vtcT KDEACTOR

ACTION COMPONENT

DtIvIStON Om Stare

wee PROT

auenourn? No. 25 FY 72
(7) awnuat

PENCHAL A) pri wtat

TemmiNation
: ; ; " . Mexico
‘ CATENS 10M CASE OFFICE® CRTENS 10%
Fr ——
ommre Heary E. Mulloy Wet
AUTHORIZATION
PRROVING AUTHOaITY. TOTS pare apraayin |” ~ ~ To
‘ yENe acres AMT THIS ACTIOM FY TOTAL FUNDS AUTHOR ET ZATION
ADDO 7 _. 25 May 1573 a ce ee
FERFOO OF APPROVAL $ 7 aur *T. 2020, —
’ : ae

FUNANC EAL
CODE

reow 2 July 177) ro 3) June 172. et
syveou | 223522009

CONDETIONS OCF APPROVAL
Amendment No. 2 to Project KDFACTOR approved in the amount
; of $7,24, Increasing the project's authorization froa
: $23,654 to a revised total of $3.,0,0 for FY 72; ternination

ot Project KDFACTOR approved effective 30 June 1972,

SIGNATURE Coe ee a , "ah 9 MAT :

TT prsteavr

DISTRIBUTION

O1V. OR STAGE tase ,
LL = . | BF OFFICER i OFFICER 4 wPs/8G

roew yg ort rerstovs SECRET

qotrioss

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14-0000

5 ry
- . Sift

22 MAY 1973

MEMORANDUM FOR: Associate Deputy Director for Operations

THROUGH: MPS/BG
SUBJECT: Amendment and Termination of Project
KDFACTOR

1. Project KDFACTOR supported a visual and photo-
graphic surveillance operation in Mexico City targetted
against the Soviet Embassy. Asscts included five agents
and two baschouse surveillance sites, Termination of
this project, effective 30 June 1972, was the result of
a security review which revealed that the VWBLANKET
principal knew the basic details of the KDFACTOR opera-

tions,

-: 2. Agent termination was accomplished without any
immediate difficulties; however, continued security will

. depend on the terminated agents’ silence. In the event

there is a compromise, the risk of damage to the Sta-
tion's relations with the Mexican Government should be
minimized because of the compatible nature of KDFACTOR' s
operations.

3. The ADDO approved Amendment No. 1 to the proj-
ect in the amount of $9,844 for FY 1972 to provide for
the agent terminations, but an overrun of $7,246 oc- °
curred as the result of miscalculation of termination’
costs. This project action requests this additional -
sum of $7, 246 to cover these expenses, .

4, The FI Staff recommends approval of this amend—

ment/termination request.
fc. A. Campbell
Chief
Foreign Intelligence '

Attachment: .
Project
Reviewing officer:
FI/OPS - Stephen Roll ...,.......

ten MDT cus

een tas

LES


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SECRET vy

- at (then willed fo) ~ ri
act eevetonve
KDFACTOR :
Division

| Western He Hemisphere } Division

eteLO sTatfom

Mexico city

PROJECT ACTION °

TYPE OF ACT 4ON

wee PROJECT
aPProval

CESK
Mexico

mise GL ACH
en [G55 1973 4167
CONCURRENCES OF OFVISIONS

TYPEO NAME (and aignature)~ oe
John C. Murray » ALL Ly ee efor

ORGANIZATIONAL
ELEMENT

John T. Boeck

Richard B. Wright“

Robert D, Wiecha

John H, Wilson

Ate

A L Fei mh E —
_c/ecs/prG|_/s/ Gale W. Allen} actreys on __

"_ APPROVAL
aut THis ACTION

ae 1 July 71 [30 June’ 7 57.246

APPROVING AUTHORITY SIGH ita
ADDO -

ron gug fsiassr

SECRET


Ye:

a
i

é

™ : SECRET. - i

‘MEMORANDUM FOR: Associate Deputy Director
For Operations ,

4

SUBJECT : “Project KDFACTOR - Amendment . —
. and Termination Request. -

1. The KDFACTOR Project (until 1970 encrypted
as the LIEMPTY Project) was initially approved in
1958 to provide financial and material support for
visual and photographic surveillance operations
targetted agdinst the Soviet Embassy in Mexico
City. In June 1972 the project supported five
agents and two basehouse surveillance sites,

2. The KDFACTOR Project was approved by the
Abpc in the amount of $19,000 for FY - 72 and
$20,000 fur FY - 73, Per DIRECTOR 285255, dated
30 June 1972, the ADDO approved Amendment N), 1
to the KDFACTOR Project in the amount of $9,844
for FY - 72 to provide for costs of agent
terminations,

3. The decision to terminate all agents and
facilities under the KDFACTOR Project was based
on a security review of the project activities
which indicated that the VWBLANKET principal knew
the basic details of the KDFACTOR operations,
including the target, the location of the surveillance
Sites, and probably the true names and former
cryptonyms of the agents covered by the project. a

4, The cost of terminating the agents under the
KDFACTOR Project amounted to $15,573; the cost of
closing down, the two basehouses under the project
was $1,412. The total amount charged to the KDFACTOR
Project in FY 72 was $36,090 which is $7,246 over
the approved authorization of $28,844. The overage
was incurred in terminating the agents and
facilities associated with the KDFACTOR Project.
Although Amendment No. 1 to the project was
approved in the amount of $9,844 to cover the
cost of terminating the agents in the

ha 13

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2 ympoeT CL BY.---2

SECRET -


1400000

sens,

SECRET ee

.

Freject, the actual payments made by Mexico City
station per the terms of cach Memorandum -.of Oral
Commitment (MQC) and in accordance with Mexican
law and custom exceeded the estimate for termination
costs made by Headquarters at the time the Amendment

Was requested. Termination payments made to each

agent aré as follows: .
KDFACTOR-2 (Recruited 1956) $8,160

KDFACTOR-S (Recruited 1956) 2,366
KDFACTOR-6 - (Recruited 1956) 2,830
KDFACTOR-8 (Recruited 1965) - 649
KDFACTOR-9 (Recruited 1966) 1,568

The long tenure of three of the terminated
agents, the relatively high monthly salary of
KDFACTOR-2 ($440) plus the computation of the
termination payments in accordance with Mexican
law and custom were the primary reasons that the
final agent termination costs amounted to $15,573,

§. All agent terminations were accomplished
in an amicable manner. No visible security risks
were apparent at the time of the terminations
although any one, or all, of the terminated agents
may at some future date decide to divulge to an
interested party the details of the KDFACTOR Project
operations, KDFACTOR-2, KDFACTOR-S, and KDFACTOR-6
have worked in photo surveillance operations for
the Station since 1956 and, therefore, obviously
have considerable knowledge of targets, former
satesites, personnel, and modus operandi of the
Station. However, since the KDFACTOR Project was
not concerned with incompatible operations or
targets, we believe the risks of damage to Station
relations with the Mexican Government in the event
of exposure of the KDFACTOR Project operations by a
terminated agent are within acceptable limits.

6. It is requested that the KDFACTOR Project
be amended to provide the sum of $7,246 for FY -
T2 to cover the costs of terminating five agents
and two basehouse surveillance sites under this

preject.

SECRET,

_ ~ SECRET -

T. It is also requested that the termination
of the KDFACTOR Project be approved effective 30
June 1972,

: . mes £, Flannery
: AC/WHD

SECRET.

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SEUKEI

ftten pallet fay ; OiVee,
} ~, a Oho LEUR TCM
PROJEL ACTION woe a ‘ ‘
; \ KDFACTOR -
tere or action [Xf rue CLO SSS Sa

ate Poourct ; Division oo i
aeregval Western Hemisphere Division i
AMENDMENT TT Teveue statiow eee ’
no. 2 Mexico City .
je eeewan {ORance ee OfSK .
ev te { One _ Mexico

Case oretcea ~~ Toate :

CRTENSSON
{

Henry E, Mullo 26 Apr 73}
: Roow WO, BUILDING rec, ere peace
TERVINAT ION 3E05 Has ext. 1973 $167 ,

CONCURRENCES OF DIVISIONS

vEwO

C/WH/L | John C. Murray

c/wi/BGF | John T. Boeck ft te
C/WH/SS | Richare B. Wright eee Be ee
C/WH/ FI Robert D. Wiecha . . .

ee ee a es
C/WH/Plans } John H. Wilson ||

C/WHD Theodore G. Shackley .
— CONCURRENCES OF OTHER COMPONENTS ~ —.
sh (Type in Organisational Flement sot Nave Uclow Onty pares ] vewo
Naen Concurrence Obtained by OCragenmating Element.) ama sur crs ee

APPROVAL.

. PERTOD AMT THIS ACTION . al TOTAL FUNDS AUTHOR ETATION
. ee a Toe ee
> - - Prices ore " 7 i
iiguly 71 30 June 72 of 7,240 jie 72 30,090 ae ue ef

APPROVING AUTHORITY SIGNATURE
ADDO os ;

Comm BU8 Solna SECRET,

$69

4st

. a

MEMORANDUM FOR: Associate Deputy Director
For Cperations

SUBJECT : Project KDFACTOR - Ahendment and , :
Ternination Request. :

“* J.-The KDFACTOR Project (until 1970 encrypted as the
LIEMPTY Project) was initially approved in 158 to provide
financial and materiel support for visual anc photographic
surveillance operations targetted against the Soviet Embassy
in Mexico City. In June 19°72 the project supported five
agents and two basehaouse surveillance sites.

2. The KDFACTOR Project was approved by the ADDO in
the amount of $19,000 for FY-72 and $20,000 for FY-73,
Per DIRECTOR 285255, dated 30 June 1972, the ADDO approved =. oe
Amendment No. 1 to the -KDFACTOR Project in the amount of . °
$9,844 for FY-72 to previde for costs of agent terminations,

-, 3. The decision to terminate all agents and facilities
under the KDFACTOR Project was based on a security review
of the project activities which indicated that the VWBLANKET
principal knew the basic details of the KDFACTOR operations,
including the target, the location of the surveillance sites,
and probably the true names and former cryptenyms of the

-agents covered by the project.

4, The costs of terminating all the agents in the KDFACTOR
.. Project-amounted to $15,573.00 which was censiderably more
: . than had been initially estimated when Amenézent No, 1 for
FY-72 was requested and approved, The totai acount charged
to the KDFACTOR Project in FY-72 was $36,080 which is $7,246
over the project's authorization of $28,844, The overage
was incurred in terminating agents and facilities associated
with the KDFACTOR Project; the effective date ef all termi-
nations was 30 June 1972. :

erann
Sus.

ee Qwener ce wy G8TQ7,


14-0000

amicable manner. No visible security ris

SSOP

S, ‘ALL agent terminations were accomplished in an

$ were apparent
at the time of the terminations_although any one, or all
of the terminationed agents ‘may at some future date decide
to divulge to an interested party the details of the
KDFACTOR Project operations, KDFACTOR-2 and KDFACTOR-5
have worked in photo surveillance operations for the
Station since 1957 and, therefore, obviously have consider-
able knowledge of targets, former safesites, personnel, and
modus operandi of the Station, However, since the KDFACTOR
Project was not concerned with incompatible operations or
targets, we believe the risks of damage to Station relations
with the Mexican Government in the event of exposure of the
KDFACTOR Project operations by a terminated agent are within

acceptable linrits. .
6, It is requested that the KDFACTOR Project be amended

* to provide the sun of $7,246 for FY-72 to cover the costs of
‘terminating five agents and two basehouse surveillance

sites covered by this project.

‘7, It is also requested that the termination of the
KDFACTOR Project be approved effective 30 June 1972.

Theodore G. Shackley
Chief ,Western Hemisphere Division

Sé SGueT

1400000 ag
ng

f
My
I
RDFACTOR ~ Nexico City, Mexico -- Photographic Surveillance
Team Support -- F¥ 1972, Cost $19,000 and FY 1973,

Cost $20,000
Fiscal Year Approved Obligated
1971 $23,635 $27,586

Changes: : o
1. The processing of photographs obtained through this

project now is performed inside the Station. KDPACTOR-1, who
formerly processed the take in an outside safehouse, was
terminated amicably in early March 1971. Security and effi-
ciency have been increased by this change, EKDFACTOR-1 was
terminated in 1970, but the Cermination payments were made
during FY 1971 cauging an increase in that years obligations.

2. Howard T. BAGAUS handled the administration of this
project to early April 1971 when project responsibility

reverted from the Operations Support Section to the REDTOP
Section. At that time Timothy H. ARCHBOLD asaumed the inside

adsinistrative supervision, and agent meetings were turned

over te. the outside case officer Bruce AR. FERNALD. When
ARCHBOLD departed PCS on 7 June 1971, Oliver J. MANKUNAS
assumed responsibility for thie project, including agent

meetings.
Ace lishments:

1, This project has provided continuous daily photo-.
graphic and visual coverage of personnel and vehicles entering
or leaving the Soviet Embassy. A total of 530 rolls of film
were produced during the reporting period. U.S. citizens,
visitors, and YDY peraonnel are given special attention. Iden-
tifications of license plates and automobile descriptions as —
well ag drivers and their compenions are identified under chis
project. Additionally, attendsnce sheets are maintained to
establish who ia at the Embassy on any given day and hour.

14-00000

ae

These photographs and reports have contributed operational
support to thé Station's Soviet operations which ia not

'. attainable elaevbere. For example, whenever the Soviets
:-hange all their license numbers the Station is able to
". compile @ nev, complete roster within a matter of weeks.

p Costs: | wa

> 4. General: “$19, 000 is requested for FY 1972 and
$20, 000 1s requeated for FY 1973. It ia also requeated -
that. the Project bé amended for FY 1971 in the amount of.
$4,260 to provide for the termination of KDFACTOR-1 and

KDFACTOR-7.
2. Source of Funda: Project KDFACTOR is included in

the Western Hemisphere Division’s Operational Program in the
amount of $23,735 for F¥ 1972 and $24,182 for F¥ 1973.

3. Project Budget:

FY 1970 FY 72 FY 73 FY 74
Estimated
Obligati
Salaries
KDFACTOR-2 $ $,280 $5,280 $5,808 $ 5,803
EDFACTOR-5 1,728 1,728 1,901 1,901
XDFACTOR-6 2,112 2,112 2,323 2,323
£DFACTOR-8 : 7638 - 768 ~ 845 843,
-EDPACTOR=9.. - = - 1,968- -4,968- 2,165 - ---2,165--
EDPACTOR-1 4,400 -0- =0- =0-
EDFACTOR-7 2,500 ; 70+ -0- =0-
* Bonuses 1,374 1,988 1,087 1,087
20,130 $12,944 314,129 $14, 129
Base houses
Rents $3 6,022 $4,350 $4,240 $ 4,240
Utilities 400 750 800 800
500 500

Maintenance Q 500
. $,622 $ 5,600 $ 5,540 5,540


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Misc Expenses

Ops entertainment § - 165 - $ 300 $ 100 $ 100
Auto maintenance . 8 100 100 - 100
Ops expenses nnd 90 36 13] 3
— . 835 3 656 331 3
Total Expenses $27,587 12,000 $20,000 $20,009
4. cy: There 1s no special need for

foreign funds. No non-JKLANCE funds are used,

3. Commitments: Christmas bonuses are provided in the
FY 72 and FY 73 budgets.

6. Funding: Funds are hand-carried fron the Statioa by
the casa officer and transferred during Clandestine meetings.
Receipts are obtained for all disbursementa according to
JELARCE regulations.

7. Agnexes: None.

KDFACTOR - Mexico City, Mexico -- Photographic Survei llatice
Team Support -- FY 1972, Cost $19,000 and FY 1973,

Cost $20,000
Piscal Year Approved ovitgaced
1972 $23,635 $27,586

Changes:

1. The processing of photographs obtained through this
project now is performed inside the Station. KDFACTOR-1, who
formerly processed the take in an outside safehouse, was
terminated amicably in early March 1971. Socurity and effi-
ciency have been increased by this change. KDFACTOR-1 was
terminated in 1970, but the termination payments were made
during FY 1971 causing an increase in that years obligations.

‘2, Moward T. BAGAUS handled the administration of this
project to early April 1971 when project responsibility
reverted from the Operations Support Section to the REDTOP
Section. At.that time Timothy H. ARCHBOLD assumed the inside
aduinistrative supervision, and agent meetings were turned
over to the outside case officer Bruce H. FERNALD. When
ARCHEOLD departed PCS on 7 June 1571, Oliver J; MANKUNAS
aseumed responsibility for this project, including agent

meetings. i

Accomplishments:

1. This project has provided continuous daily photo-
graphic and visual coverage of personnel and vehicles entering
or leaving the Soviet Enbassy. A total of 530 rolls of film
were produced during the reporting period. U.S. citizens.
visitors, and TDY personnel ere given special attention. Iden-
tifications of license plates and automobile descriptions aa
well az drivers and their campanions are identified under this
project. Additionally, attendance sheets are maintained to
establish who is at the Embassy on any given day and hour.

14-0000

#2

4

i)

These photographs and reports have contributed operational
support to. the Station's Soviet operations which is not |
‘attainable elsewhere, For example, whenever the Sovieta i
- change all their license nusbers the Station is able to |
{

i

1

!

compile a new, complete roster within a matter of wieks.

: 1. General: $19,000 is requested for FY 1972 and
‘$20,000 is requested for FY 1973. It is also requested
that the Project be amended for FY 1971 in the amount of
$4,260 to provide for the termination of KDFACTOR-1 and

KDFACTOR-7.
2. Source of Funds: Project KDFACTOR is included in

the Western Hemisphere Division's Operational Program in the
amount of $23,735 for FY 1972 and $24,182 for FY 1973. !

3. Project Budget:

I
FY 1970 FY 7200 FY 73002 F¥ 74
Estimated v
! Obligations :
i Salaries |
KDFACTOR-2 $ $,280 $5,280 $5,808 $ 5,808
KDFACTOR-5 1,728 1,728 1,901 1,901
| KDFACTOR-6 2,112 2,112 =. 2,323 2,323 i
i KDFACTOR<8 768 768 845 845
EDFACTOR-9 > 1,968- 1,968 2,165 2,165 :
: KDFACTOR-1 4,400 -0- -0- -0-
: KDFACTOR-~7 2,500 +0- =0- -0-
; Bonuses __ 1,374 1,088 1,037 1,087
$20, 130 $12,944 $14,129 $14,129 |
i :
i Base houses
! Rents - $ 6,022 $4,350 $4,240 $ 4,240 :
Utilities 400 750 800 800 4

Maintenance 200 500 m0) 500
6,622 $ 5,600 $ 5,540 3 5,540


14-00000

-3-

Mise Expenses
Ops entertainment $ 165 $ 300 $ 100 $- 100
Auto maintenance 80 100 100 100

Ops expenses 590 56 A3k A31
$ 835 $ 4656 $ 331 § 331

“Total Expenses’ $27,587 $19,000 $20,000 $20,000

4. Foreign Currency: There is uo special need for

foreign funds. No non-JKLANCE funds are used.

‘S. Commitments: Christmas bonuses are provided in the
FY 72 and FY 73 budgets. |
6. Fymding: Funds are handecarried from tha Station by

the case officer and transferred during clandestine meetings.
Receipts are obtained for all disbursements according to

JKLANCE regulations.
7. Annexes: None.

te secon tt nent


14-0000

~ ~ “ + 7 © Swroulmer
Dundas. aa

ScOnCT, (Optional)
- ‘ KDFACTOR tote Renewal

‘ Fred Kravcov be = a i
WH/1, 3E05 4167 oo

FFICER'S * COMMENTS (Number eoch comment to thow from whom
to Crow @ fine acrons columa ofter soch comment) i

ne + | BUTI RGNSS AUMLABIE

Ded

pane (Ami ATL ROS NILABLE J

4 . ae /
Ciw/per OY) NS ¥I79 Puwos wire By mast.

C/WH/SS

C/WH/1/FI/CI L
rom 610 “tS Tiy SECRET ©] CONFIDENTIAL «=[() {NTERNAL, = 7] sUNCLASSIFIED


14-0000

Nom SECRET -

“PROJECT APPROVAL NOTIFICATION

roster EDVACTGR B ie

~TACTION

CUVISTON O8 BTAFE

ute PROJECT

autnouent Nos 1, FY m4
Tnnoae BRANCH

WENEOAL OF pie tal

Raxico -

CaTENstON TASt OFFICER ° CATENS TOM
OTHER vq Murray 65955
AUTHOR EZATION
APRA OVING AUTHOR TTY ~ OATe aPpRDNED | wer Tes action _ ~ TOTAL FUNDS AUTHORIZATION
aDDP 30 duna 1972 -1. 92-1: 28, ht
PEmigd OF APPROVAL 3 98h : £5 ih stan
* id
paou 2 uly 1978 vo 30- duns 1972 Taw
_. sywagg 23351009
CONGITIONS OF APPROVAL .
Amendment Hoe 1 to Project KDFACTOR app roved, as per
"+ BIR 285265, in tha snount of $9,84h, increasing the
o - __, Project's e suthorisation frea #29000 to a revised ;
~~ "= tofaa~ae $28 ,84h for FY 72. ee ~ cd
SIGNATURE
wrs/a : - Rs

O°STRIBUTION

_ —_ ~ le epee wn ee ogee
¥ 7

: m7 _——__-—-
Div. OR STAFF } H Ease
jsf ne | ' srerricee oo {?]  esricen > MPs/8G l

Fore BYQ Vet Chertous SECRET ’

8

Vs 70 eOHrrons

: SECRET . _
, ~ PROJECT APPROVAL NOTIFICATION :
. . PROC? DWACTR : * . :
RETION es
mena CT kT
Nia PPOseCT WH .

P| oun

ARANCH
(Coane :
bee @ Ms

TERMINATION

CnTENS ton

TRTONS 10% TaASt OFFICER

1 te em ne eae a uae em te eee emcee est miei see a ots

3
: _ _.| Fred Ruvooy N67
1 AUTHOR E SATION
i - a ees ne oe
APPEOVING AUTNORITY DATE aPPMavEn ‘Y TOTAL FUNDS AUTHOBIZATION

1 72_[£19,000
13_Ls. 20,000

AT. — WO December IITA I a

PERIOD OF APPAAVAL

ivuy 197. 1. 30 dune 1973

FO net oe em _

FENANC TAL

cao - -
syMaou | 213551009 ; -

CONDETIONS OF AP

SIGNATURE ‘ :
‘ (sinss2) Le MMe detain 1

MPS‘8E

. DISTRIBUTION ’

—_——_-_______- _ - - ,
7
Ov. GR STAFF CASE
wPos
ia : AF OFFICER ' oretcee aves

: iat)

FORM gug est retvious . SECRET a

41-70 rertions


14.90000

NO. }
(DOGENSNT @ FOR
THIS PRNECT)

- NOTIFICATION OF PROJECT APPROVAL ACTION

SECRET FUNDING.
(When Filled In)

pats 17.D-< 71 ———

TO: CHIEF OF STATION (BaSE)_NWwx + —_—

ATTENTION: FINANCE OFFICER

INFO:

proscr Kav acfoe Fan AV5 - 1004

TYPS OF ACTION

- — 4,
PERIOD OF acTION!3*¢ 1)! £0 dese 473 AMOUNT 3 39,v00 |

NEW PREVIOUS ACTION IN THIS FISCAL YEAR #1") vie 72>
RENEWAL %— ‘TOTAL FISCAL YEAR APPROVAL 15, eyo Ta
EXTENSION ~ ' —

_ TERMINATION” FUNDS AVAILABLE FOR HQS USE 9 —_
AMENDNENT ~~ FUNDS AVAILABLE FOR FIELD USE 15. vo ar CPLA ee
OTHER _ F —_—_—
CHIEF, WH/BSP

HQS USE ONLY _
PROCESSED APPROVED TYPE OF ACTION PERIOD AMOUNT

SECRET
(when Pilled In)

14-0000

SECRET
ee

- PROJECT APPROVAL NOTIFICATION

prrooet RDPAGTOR

ACTION Co cect oe

cao pete renee ner ee
DivIStom OR STARE
NER PPOsEET

COMPONENT

>. § AMENDMENT Wo. L yy n

a RANCH
anual
PeMta@at | ae LS
TERMINATION . utsa
emtens ton : TAS OFFICER
an ——_____--—-+

otHre ‘ Pred Kravoov

AUTHORS ZATION

TOTAL FUNOS AUTHORS ZATION

APPADVING RUTHORETY.
ArDP 20 Deoenber 1971

aut THIs ACTION

+ 4260
TINANC TAL
ron

SyMuot _

PERIOD OF APPROVAL

thom 2 duly 1970 — ro__ 20 Juma 197

CONDITIONS OF APPHOVAL

Aneniment No, 1 to Project KDFACTOR appreved in the
amount of $4,260, increasing tho project's FY 71
authorization to a revised total of 827,850.

if!

im
Hl
|

Ty a —onassidl =r

SIGNATURE .
EG te we PP Te Ae ee ene
MPS/8G . ae .
fi
LISTEIBUTION

j OV. O8 STAFF case 7
‘ ra ' aF OFFICER 1 orFicer | mesvor fy
FoRM Bug ust Mt ebous SECRET fé

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ADDP Comment of 26 May 70 — ;


14-0000

secret

FaN ACCOUNT TREND REPORT
30 NGV 1972 °

FaN NUMBERS 35-1009 TITLE! KOFACTOR OFFICE! WESTERN HEMTS DIV

ANDGET ARFAS . CATEGORY! COLLECTION INTELL ELEMENTS, CLOSE OPS SUPPORT
BUNGET COUNTRYE MEKICO SUSCATEGORY? CLANDESTINE . | SURFLEMENTS
. : '
1972 . 977s, ! 1974 1975

et te a meee eee eee eee Oe edeetermeriete atl

; ACTUAL OPERATING actuat SPRLG BAL REMAIN ESTINATE ESTIMATE

} 7 : a '

~ : T
. RENT covm x UtTE '
2793 SAFEMOUSES 59220 5.540 10056 19,18 SeSRe 50540
peewee ewe ne enn ee eee + ae,
TOTAL 50220 55550 —  1e05H 2908 4048s 50540
OTHE® SFRVICES
28545 AGENT S86 169626 1.900 695 0965% 395 1.000
PRS6 AGENT CRA 129404 3.780 35780 12e7Aa0
P57 OPF XP Sku 203 . 230 1” 230 230
2549 UPEXP OTHR t2 7 209 i 100 100
. ae ee ee ewe eee eee ee eee a a
TOTAL 290295 Set10 695 «13.6% aeals 1401h0
SUPPLIES ,
240K PUNTO 1500 ; 350 350
Pag PRUP ENC 350 we . tee .
ToTaL 350 os. ee ee 356 350 —
“ TOTAL Fav 3§=1009 140865 : 11.000 1e752 15.98 992409 200000 °
fone PEVORTH@LA SECRET . PAGE 311
on ! .
Mo

14-00000 4

"| 4 ot nj

g EC 171

iy
1

MEMORANDUM FOR; Assistant Deputy Director for Plans

‘THROUGH: MPS/BG
SUBJECT: Renewal of Project KDFACTOR
° in 1972 for $19,000

in 1973 for $20,000

l. This project covers photo and visual surveillance
of the Soviet Embassy in Mexico City. One observation
post covers the front gate of the building,and another
covers the rear gate and walled compound. Five salaried
agents man the sites, four in front and one in back. An
official cover case officer collects the take (rolls of
film and logs of visitors) once a week by car meetings
with the OP keepers. The films are developed and printed
inside the Station.

2. The production from this operation has consis-
tently been rated: high by the Bureau (which is the prin-
cipal customer in the field), by other Government agencies
and by SB Division. Photosurveillance of a Soviet Embassy
might not be a high priority target in some countries.

But the fact that the Soviet Embassy in Mexico is a large
and active one and the fact that its primary target is

Operations against the United States make our effort

important and valuable. his is the operation that pro- This mM

duced the photographs of Lee Harvey Oswald visiting the
Soviet Embassy in 1962.

3. This seemingly straightforward operation has not
always been so uncomplicated. Both sites have been in
operation and served by the same OP keepers for more than
a dozen years. At one of the sites the OP keeper's wife
and children take turns manning the equipment. A now-
terminated principal agent was divorced several years

‘ago from-a wife who knew a lot about the operation. Some

desk officers believe that the medical doctor who for
years was supposed to be devéloping the films was simply
too busy to do so and that the work was probably done by
his uncleared secretary. Family relationships keep
cropping up among supposedly compartmented agents. All
of this is in the files but not in any one place. We

oe

ervor ,

D/EG.,

19 Aps!79 .


, believe it is time for the Station to make an updated

j Security review of the operation with particular attention
to the knowledgeability of terminated agents and their
families. We also believe that the Station should now
address itself to the contingency that the present sites
or personnel will be blown and to investigate alternative
means of continuing their valuable coverage.

4. The ADDP last approved this project in May 1970
. with the condition that termination payments to the
principal agent and his divorced wife be made on a
monthly basis. This condition has been met.

5. The budgets requested for the next two years are
simple and straightforward. Salaries and the traditional
bonuses for the five paid agents come to about $13,000.
Rent and utilities on the two observation posts come to
$5,600. The small balance is for operational expenses.
This project-action also requests amendment of the FY
1971 budget by $4,260 to cover that part of the cost of
termination bonuses to the principal agent and his di-
vorcéed wife which could not be absorbed by the project.
The total of the termination bonuses was $12,500.

6. This is a valuable and productive project which
helps fulfill a Priority A-1 Station requirement. The

FI Staff recommends approval.
Cth. COC.

L. A. Campbell
Chief
. Foreign Intelligence
Attachment
Project

seOntl

PROJECT KDFACTOR

MPS/BG/FUAFKatein:de © (13 DEC 71)

. Distribution:
O& 1 - Addressee
1 - ADD/P
x WH/}
1 .-. FI/OPS
L « CI/OPS
t - C/CCS/PRG

1 - MPS/BG/Fi

SEGAET

14-0000

os

ticket
i 4 DOP 21-5999 *

MEMORANDUM FOR: Chief, Western Homisphore Division
SUBJECT: ' PL Project KDFACTOR
FY 1971 Amendment No, 1
Biennial Renewal

Proposal] for Fiscal

Years 1972 and 1973

i
1
!
|
i

1, On 10 December 1971 Lapproved subject actions
an the amounts svecified below:

a FY 197i Amendmy.: Now) + For $4,260, increasing
the project's FY iv7i

5 funds authorization

(from $23, 630) to $.7, 855,

wo

b. FY i$72 Renewal ~ For $19,000 9
ce. FY 1973 Renewal - For $20,000

2. Task that the Station conduct an updated security review
of this operation, giving particular attention to the knowledge-
ability of terminated agents and their families as discussed in
paragraph 3 of referent memorandum,

3. Also, lask that you provide me (via MPs/ BG) with a
Memorandum report summarizing the results of the above
{paragraph 2) security review by 31 March 1972,

dak \ue ae :

. Cord Meyor\ Jr. ~
Assistant Deputy Director for Plans

tt - - ~o : % Of Sag “oy?
x Hipinde | Be bp 2- RST ANS arate seiy ELSIE Roe
QJ

SECRET

14-0000

. SECRET
vo : when Kriled tay woey .
. Pap set CRYPT SNe

net PROJECT ACTION | KDFACTOR

x wire ca

~ Tori sion —

Western Hemisphere Division

Fife STATION

wow erosect
aPPooval

BRANCH OCeEK

cage orricee ~ Date :
Fred Kravcov 28 Oct 7r

ROOM NO. . Hae ro BLACK
E03 Tle 19736167

CONCURRENCES OF DiVtS i VISIONS

J frensunarion ~

Dates

| Pthefu | Hele are

Lunsford 0. n6f =e gett ks ao
~ p Ridhard B. Wright te

ORGAMLZATIONAL | - , .
- eleuenr TYPEO NAME (*

A Zs.
AL Lim

bn Nerente Aten

(type in Organisational Floment and Nace Below Only | wt
When Concurrence Obtained by Oet tnaring Element.) ou vie SS
a ar’ anne | ial AG i enpnennnen i —
. [SB/X/WH ‘Haviland. Smith. cus Ce ud a ¥
FI Staff | /s/ Arthur C. Close : § Dec 71 -

CI Staff | Frank Hughes /s/

CCS/PRQ_ | Charles Beckman _/g/

—— j26 Nov 7. oe
*With the conditions as stated in my memorandum dated 14 14 Pesepiee. 1971 4 .

Rowse Ts vie Danny —
APPROVAL

rt cn tain fp iit wae acai ae A ae cee:
19/73 [* 20 OOO ies pent

P1-5899)

E

une_ 0,000 ._
APPROVING AUTHORITY aml DATE '
A/DDP Cr Win on As | 1 Dec 4

soap OUB einen SECRET

14-0000

SECRET

KDFACTOR - Mexico City, Mexico -- Photographic Surveillance
Team Support +- FY 1972, Cost $19,000 and FY 1973,

Cost $20,000

Fiscal Year Approved ———--.__ Obligated
1971 $23,635 $27,586

Changes:
1. The processing of photographs obtained through this
project now is performed inside the Station. KDFACTOR-1, who
formerly processed the take in an outside safehouse, was
terminated amicably in early March 1971. Security and effi-
ciency have been increased by this change. - KDFACTOR-7 was
terminated in 1970, but the termination payments were made
during FY 1971 causing an increase in that years obligations.

2. Howard T. BAGAUS handled the administration of this
project to early April 1971 when project responsibility
reverted from the Operations Support Section to the REDTOP
Section. At that time Timothy H. ARCHBOLD assumed the inside
administrative supervision, and agent meetings were turned
over to the outside case officer Bruce H. FERNALD. When
ARCHBOLD departed PCS on 7 June 1971, Oliver J. MANKUNAS
assumed responsibility for this project, including agent

meetings.

Accomplishments:

1. This project has provided continuous daily photo-
graphic and visual coverage of personnel and vehicles entering
ox leaving the Soviet Embassy. A total of 530 rolls of film
were produced during the reporting period. U.S. citizens,
visitors, and TDY personnel are given special attention. Iden-
tifications of license plates and automobile descriptions as
well as drivers and their companions are identified under this
project. Additionally, attendance sheets are maintained to
establish who is at the Embassy on any given day and hour.


14-0000

SECRET -2-

These photographs, and reports have contributed olevactonat
support to the Station's Soviet operations which is not
attainable elsewhere. For example, whenever the Soviets
change all their license numbers the Station is able to
compile a new, complete roster within a matter of weeks.

Costs:

1. General: $19,000 is requested for FY 1972 and
$20,000 is requested for FY 1973. It is also requested
that the Project be amended for FY 1971 in the amount of
$4,260 to provide for the termination of KDFACTOR~1 and

KDFACTOR-7.

2. Sovirce of Funds: Project KDFACTOR is included in
the Western Hemisphere Division's Operational Program in the
amount of $23,735 for FY 1972 and $24,182 for. FY 1973.

3. Project Budget:

FY 1971 _ FY 72 FY 73 FY 74
Estimated
Obligations
Salaries
KDPACTOR~2 $ 5,280 $ 5,280 $5,808 $ 5,808
KDFACTOR-5 1,728 1,728 1,901 1,901
KDFACTOR-6 2,112 2,112 2,323 2,323
KDFACTOR-8 768 768 845 845
KDFACTOR~9 1,968 1,968 2,165 2,165
KDFACTOR-1 4,400 -0- -0- ~0-
KDFACTOR-7 2,500 -0- -0- -0-
Bonuses 1,374 1,088 _— 1,087 _ 1,087
$20,130 $12,944 $14,129 $14,129
Base houses
Rents $ 6,022 $4,350 $ 4,240 $ 4,240
Utilities 400 750 800 800
Maintenance ___.200 _____500 500 _ 500
$ 6,622 $5,600 $5,540 $5,540

SECRET

14-0000

SECRET ~*

Misc Expenses

- Ops entertainment $ 165 $ 300 $ 100 $ 100
Auto maintenance 80 100 100 - 100
Ops expenses 590 56 131 131

a»
w
we
i
w
Ww
-

$ 835 $ 456
Total Expenses $27,537 $19,000 $20,000 $20,000 ~

4. Foreign Currency: There is no special need for
foreign funds. No non-JKLANCE funds are used,

5. Commitments: Christmas bonuses are provided in the
FY 72 and FY 73 budgets. .

6. Funding: Funds are hand-carried from the Station by
the case officer and transferred during clandestine meetings.
Receipts are obtained for all disbursements according to

JKLANCE regulations.

7. Annexes: None.

SECRET


14-0000

: i
‘

: i

: i

i :

i ‘

L

1 :


14-0000

ee SEE a

: ‘ termination payments to GER ENDE and his wife will be.
. . on a monthly basis as described in paragraph 4 of referent,

i “MEMORANDUM FOR: Chief, Western Herniephere Division’ |
[ 7 SUBJECT os FY Project LIEMPTY a .
H ~ FY 1970 Amendment . «..
. _ PY 1971 Renewal a
. , REFERENCE _o: G/EI Memoranduin tor - ADD/P, dated | ;
i . ” 19 May 1970, Subject: "Renewal at. ee
i Project LIEMPTY," ae
i Lo . i
1. On 22 May 1970.1 approved subject action for the me
_ amounts requested with the understanding that the .

2. Messrs John c. Murray and Charles M, Bounds
attended the project meeting,

oo, co, aeons + a i

Assistant Deputy Director for Plans .

SECRET

porate te ae the ee

pee vee

LIV eeeeitete meta ae a

:
4

eet

”"MPS/BG/FI/ALKatein/aw

nod
6

Distribution:

Okl- Addreasee
1 - ADD/P

1 - FI/OPS

1 = CI/OPS |

: a - WHIZ
“1 + SB/X/WH
1- ccs/PRG

1 . DDP/NSP

"1 - MPS/BG

t

‘ye


14-0000

ae "-SecreT oon

oe (then Kilted Tay *

“oe PROUECT ACTION Ow:
ee : oe LIEMPTY
LD AYRE, OF ACTION © [LX fere L ca _[

Why PROJECT “[oivesion

arPeovat Western Hemisphere. Diyieton.

Pe” off CayP TON

AMENDMENT . reeen station

Je 7s ~.Mexico. -GAky

:  Jeenewat. BRANCH bese
: APY 98 71 ed aes One ae ae >
: Po fease oreces, . poate
. i ; CATENS TON of Jack ae : 10 April. 710)
om ~ Saoow so. : - | aulLoing. AE RLACK

TERMINATION

_3E0S Has. | 1973 4167
CONCURRENCES OF DIVISIONS
, Oates

oF OmsantlarroNak f- crveco NAME cad sienoture) * . : Tracuep -

asinall . ~
cfmidy pe toma € Cc. norco Pl m Book uM bee | te Aee

Pie
yets79 |

C/WR/FI
c/ve/Plans o Robert _| B, Moore CLA, Bem.\2) “APR iS/i ular

Richard S._ Welch_ n LLM yiyfoe

| C/aHD_ William V. V. Broe US Bivb ho] 2 APR 5 Fy. 4 brs ody

H

_ GONCURRENCES OF OTHER "COMPONENTS

(type ia Organisational Element and Nave
‘Ween Concurrence Obtained by Originating

Cates

ALIN [awl |
_j29 may 1976p 9 BAY 1970 |

sskjwi | Lee |

“| ry Stare

cI State [/S/_ 11 May 70 i
COS/PRG | wf Ghnstos eatin? be | 8 May 70
; 24/4/70_ :

npp/nsp|/S/ Gerard DroHer

GIMPSTBG |g Soe
4 tfc _

_ APPROVAL

i PERIOD © “7 THis Mts ACTION . TOTAL FUNGS AUTHOP IZATION
: ie $369" [30 Wane W970 TF 10; #99) TS 70 £49,468
‘1 July 1970 (30 June 41971 23,635 1a971 1% 23. 635.7
Phe ALTRORD TY : STGNBEURE . : DATE _

A/DDP | y (\ Maresh? « hn tn Up

seas S48 tae rtgag : ; SECRET

{St


14-0000

a“, 7

Description! ©”

wee ; i ST PT
ee Cult

‘Wexico éity, Mexico -- - Photographic ‘Surveillance - vee
Toam: Support. -- FY 1971, Cost $23, 635.

» Fiscal, Year. Approved - Obligated. a
-» 3966 ooo 4) $43,145 $36,294 |
-1967 °° - 45,000 © 42,082
52968 0. - 42,185 . “42,158
-1969 433520 41,416
- 1970 . "38,970  , 49, "468 (Projected)

“Purpose: tee ;
Projoct. LIEMPTY supports a visual and photographic

Surveillance. of the Soviet Embassy in Mexico City. The

aim is to identify and cover the movezeats of persons
centering and leaving the Embassy, including Soviets and
“visitors. The inteliigenco collected through such activity.
contributes t6-the Station's overall Soviet operations
program, mainly in support of Priority A-l, but to some
extent, Priority A-4, of the Operating Directive for Mexico.

e 1. The Project ‘operates: “through two fixed baschouse
‘surveillance posts, a small photographic laboratory, a
- principal agent, and six Sub-agents. A team of four sub-
“agents, ‘operating from a basehouse, maintains yisual and
.photographic: surveillance of the Soviet Embassy front
“entrance, One Sub-agent, operating from a second base=
~house, covers an, area in back of the Embassy, where Soviet
“officials meet, play: and work, These units photograph all
“persons moving in or out of the specific target areas. They
‘also. maintain logs and provide written reports on observed
‘activity. - All of this material is passed to the principal
agent, who -passes the film to another sub-agent for process-
‘ing at a laboratory equipped for that purpose. After the -
‘film is processed and printed, the principal agent passes
the finished. product, plus written reports and logs, to the
‘Station case officer. A brief description of each unit,.
eich agent and his role in the operation follows.

SECRET

=

; This. house has been in
ce October 1966. It isvrented through |
LIMOUSINE (201- #5762), a. cleared American businessman. >-He~
is the ostensible owner of ‘Yecord and, as tho landlord, -
‘collects: rent from. the tenants and then passes it to the
“Station case officer, .LIEMPTY-13 and -his family (see
- parag. aph. 3° beTow) - ‘live ‘in the: ‘LILYRIC house and conduct
: their surveillance . operation, fron. it during daylight | hours’
(0800-1800) .. ne

aa Ba! LiEMpTy-19° (@01-119961) is the key. member of the
LILYRIC baschouse team.. He maintains contact with tho
principal” agent. and does ‘some photographic work. ‘Howover, +
‘becauso LIEMPTY-13.is employed outside as an industrial
engineer, | he. is’ unable. to spend.much time operating the

2 LILYRIC ‘photographic’ “equipment, and most of this work is

” done by "his wife, LIEMPTY-14, and their. sons, LIEMPTY-26
‘and 1 LIEMPTY-27 (see paragraphs 4, S and 6 bolow).

4a. LIEMPTY-14 (201-167567) is the main photographor
‘and observer at the LILYRIC basehouse. She-works closely
‘with her husband; LIEMPTY-13, in running the operation,
including: the: preparation of observation reports and logs.
She..also does’ the. LILYRIC housekeeping, as any housowife
‘would do, .

Se  LIEMPTY-26 (01-7621), the son of LIEMPTY-13 and.
-LIEMPTY-14, has been a-student. at the Mexican Technological
“Institute, In ‘his. spare: time he operates the LILYRIC photo-
«graphic: equipment, and helps LIEMPTY-14 in maintaining the
Sarrival and. departure Togs of. target personalities,

6. LIEMPTY+27 (201- 762112), another son of LIEMPTY-13
Cand -LIEMPTY-14, has. been a ‘prep school student. Ho assists
"in operating the’: ‘LILYRIC ‘photographic equipment and tran-
_seribes: notes into’ a finished typewritten log of eventa.

7. LICALLA. (1Exi=03) - is a basehouse located behind
“the Soviet- Embassy. It has been in- operation since 1957,
“The ‘building, a four-unit affair, collectively known as |
*:LIMUST,. is ‘Agency owned, It was purchased through .

- LIMOUSINE ‘in September 1957, and the property is in his

‘name. ..The LICALLA site is occupied by LIEMPTY~-9 (see_
paragraph 8 below) and. he runs the surveillance operation
from’ it.

SECRET


14-0000

: er arTs

Nereee ee Be

{ 36454) is ‘the only agent operating”
s | He does all the photograpny, main-

ry “and prepares: obsérvation. reports. He’ also main-..
tains contact with the principal agent. _ LIENPTY= 9 is

. insurance. ‘salésman and is self-cmployed in t
Accounting: businéss,- “which he conducts at the LICALLA site.

; OY “ Raymond a GERENDE (201-119523) has been the ’
_ prineipal ‘agent for this project. He. its a Mexican national -
ntract agent who is self-employed as an English teacher
and.-also works as a salesman, for a light bulb manufacturer. -
GERENDE has been mainly responsible for maintaining contact
with’ the- LIEMPTY agents, passing instructions to them, and
-collecting the product for passing to the Station case
officer. He has*also paid them and handicd all other
_. administrative matters. . He is being terminated by the end
ot FY 1970 for security, reasons (see Problems, paragraph 1).°

ee , ; “to. “Bruce H, ‘FERNALD (P) (201-008189) replaced
, : . GERENDE (see paragraph 9 above) as the project's principal
agent in early December 1969. FERNALD, a U.S. citizen born
_ in’ June 1915, operates under non-official cover as a retired
‘Jmmigrant. fle is responsible for maintaining contact with
‘the - LIEMPTY ,Agents-and collecting the product for passing
Soe cl to. the. Station: ase. officer... He also handles administrative
wo “lS matters, including agent Salary payments, FERNALD is
; - financially covered under Project AEMAGNIFY, - 4

ad “l1, The LIEWPTY photographic laboratory (NEXI- 137) is
. located in a room ‘at GERENDE's residence. It is equipped
Te , ‘to process the photographs taken by the LIEMPTY surveillance.
dai.. “units. The work is done by LLEMPTY-4, (Sec paragraph 12
oo" below). Since GERENDE will be terminated by the ‘end: of. .
FY 1970, the Station is taking steps to establish a new
LIBMPTY: photographic - laboratory at a new safesite,

er 12 LIEMPTY=4 ‘(2n1- 117967) processes all the photo-
graphic “patm taken by’ the LIEMPTY photographers and makes
the hunber of prints required, He does this work ati night
in the LIEMPTY photographic laboratory. .He is self- employed |
asa medical doctor, and he is a brother-in- law of GERENDE,

in whose home the laboratory” is located. DG
. a . 7


14-0000

“le The - LiENTRAP. fobile- ‘unit, consisting of LIEMPTY-10.
7 and. “‘LIEMPTY-11,, is. being removed from-Project ‘-LIEMPTY and
* placed. under” Project. LIEMBRACE, which supports a unilateral |
“he physical” survetllance team. - The purpose of this change is.
‘to increase the size of the LIEMBRACE team in order to meet _
i growing. demand. for operational. surveillance support from
the various Station operating sections. The transfer wiil
“.. become effective at the ‘beginning of FY 1971 and both : -
.. FY 1971. project. budgets - -have been adjusted to cover financial
“aspects: of the change. | : no

rn 2a “Raymond _ ‘y GERENDE’ was “removed as the LIEMPTY
principal agent in early December 1969 owing to a security.
problem (sec Problems, paragraph 1). He was replaced ‘on,
9.December 1969 by by Bruce. H, FERNALD, a carecr agent oper-

_ ating. under cover as a retired immigrant. The chang?. has

'.-caused some delay in the. receipt of photographs because
FERNALD is unable to meet LIEMPTY agents as frequently as”
GERENDE had met ‘them, but operational effectiveness is not
significantly reduced by this delay. The key issue is that
security and reliability of the principal agent have Amproved ,

considerably.

: Accomplishments

a / ‘1. Project. LIEMpry has provided continuous daily
Pe . photographic--and visual coverage (Honday through Saturday)
‘of the tront entrance and rear areas of the Soviet Embassy
“in Mexico City. All Soviet personnel and their visitors
‘entering or leaving the Embassy have.‘been. photographed.

addition, visual surveillance. reports were prepared when
appropriate, These photographs and reports have contributed.
essential operational support .to the Station's Soviet oper~

ations program,

2. Recently, LIEMPTY photographs were exclusively used.
“to produce an updated mug book on Soviet officials in Mexico.
‘The book has been loaned to the FBI, _AF/OSI and. the 902nd .
Military Intelligence Group for operational use in debriefing
theiy agents engaged in dangle operations and double agent ;
‘operations against the Soviet services in Mexico City. One
- 902nd controlled agent was identified from an LIEMPTY photo-
“graph taken when the agent tried to contact the Soviets at

In


14-0000

-.-,who some of his associates were,
* Konstantinovich IGNATYEV, who had arrived in Mexico City
' from Caracas, Venezuela, LIEMPTY was able to observe

aot cai
. reo
CE uL ET

~5-

the Soviet Embassy in-Mexico City. Similarly, an AF/OSI
controlled agent scheduled to mect a Sovict contact was
unable to do so owing to illness, but LIEMPTY photographed

.another person who appeared at the meeting site and this

person is beliéved'-to.-be. the agent's Soviet case officer.

Such coverage hag been helpful to the 902nd, AF/OSI and

the FBI in running their controlled double agent operations
against the Soviets in Mexico,

: 3. Within one weok after a biannual change of license
plates on Soviet Embassy vehicles, LIEMPTY had provided a ~

-eomplete list of the new tag numbers, along with a complete

identification of the vchicles. Among other things, this
enabled the Station to identify the companions of Aleksandr
Aleksandrovich NIKITIN, a known KGB officer, during his

last few days in Mexico,

4. LIEMPTY has also dotormined that newcomers to the

Soviet Embassy frequéntly gravitate to groupings with their
-RIS colleagues in the “safoty" of the Embassy backyard,

This fact enabled the Station.to make certain tentative
KGB and GRU identifications. In addition, certain TDYers
have been linked up with their escort officers and clues

to personal relationships have occasionally been exploited.

5. In the field of Sovict patterns of activity and
associations, LIEMPTY has been able to report accurate
changes in certain specific cases. LIEMPTY coverage showed

‘that NIKITIN, mentioned in paragraph 3 above, changed his

activity pattern following the defection of Raisa
Yerofeyevna KISELNIKOVA, former secretary in the Commercial
Mission in Mexico, The same applies to Oleg NECHIPORENKO,
a Second Secretary at the Embassy and a known KGB officer.
LIEMPTY also provided information on the patterns and
asseciations of Yuriy Viktorovich KUPLYAKOV, a known KGB
officer and on Valeriy Vladimirovich SOKOLIN, a known GRU
officer. Coverage of Vladimir Viktorovich GORDEYEV, a
suspect KGB officer, .showed that he did, in fact, work ina
“restricted area" at the Soviet Embassy’ and also’ established
In the case of Oleg

IGNATYEV entering and leaving in the company of Svyastoslav
Fedorovich KUZNETSOV, Press ‘Attache and First Secretary of
the Soviet Embassy, IGNATYEY also visited the Soviet Embassy

SECRET


14-0000

several othéer times during his stay in Mexico City and
had contact with other known. Soviet intelligence officers
while visiting. This kind of information is a basic
contribution to the Station's continuing efforts to
identify and assess certain Soviets for possible
recruitment or defection,

- . - , 6, At Headquarters, the Soviet Bloc Division uses
LIEMPTY photographs, particularly photographs of Soviet
Embassy officials, for identification purposes in con-
nection with defector cascs. ‘he LIEMPTY material also
keeps the Station's Soviet section up-to-date on which
Soviet officers have been in the Embassy, which ones have
been away; who has used which car; who has been in contact
with whom; and other similar information useful in the
conduct of Soviet operations,

Problems:

1. <A security problem has developed involving
Raymond HU, GERENDE, According to GERENDE, his wife wants
a divorce, apparently based mainly on incompatability of
personalities. The problem basically is that both want :
custody of the children and this has sparked a dispute SO, '
that has become more bitter and violent daily. In addition, ’
the monetary settlement ig in dispute. The problem is ve ‘
compounded by the fact that GERENDE's wife knows in.some ; 1
considerable detail of GERENDE's activities on behaif of :
the Agency. Thus, if the case does go to court, it could
lead to the surfacing of GERENDE's Agency employment and
Possible compromise of LILYRIC, LICALLA and LIENTRAP.
Even if the case does not go to court, GERENDE's wife could
expose him as an Agency ¢cnployee, Since late 1969, Mexico . i
City Station has been in touch with both GERENDE and his ;
wife on this problem, and every effort is being made by ‘
the Station to-have both parties settle the divorce out of ;
court, and to protect GERENDE's cover and that of the
project, After weighing all factors, it has been decided
that continued employment of GERENDE is not an acceptable
risk, and the decision has been reached to terminate him
by the end of FY 1979. GERENDE will be paid a termination
bonus of $10,000 for 15 years service, about $1,250 more
than the $8,750 his contract calls for, in order to ensure '
that the termination is amicable and thereby preserve :


ay

“project security. In addition, his wife, LIEMPTY-19 will
- be given $2,500 as a security measure designed to keep her

oo, from revealing what She knows about project operations,

The FY 1970 budget is’ being amended to cover this amount. .

2. Other aspects of security continue relatively
unchanged. . All the agents still have jobs to backstop
their Agency wages. The Station is compartmented from
the action agents through FERNALD, whose contact with the
sub-agents is reasonably well covered by his status as a
retired immigrant. FERNALD has been meeting LIEMPTY-9 and
LIFEMPY-13 since 9 December 1969. Brief meetings are held
once each week at pre-arranged times and places, well away
from the target area. Occasionally emergency meetings are
called, by phone, if special coverage is desired. FERNALD
also meets LIENPTY-4 to exchange films and prints. These
meetings are held weekly at pre-arranged times and places.
FERNALD can change meeting plans by calling LIEMPTY-4
directly by telephone, In addition, LIEMPTY-4 has been
given a special extension in the Station through which he
may call as "Dr. Carios"” to leave a message for "Victor"
(FERNALD). The Station case officer maintains weekly clan-
destine contact with FERNALD in order to manage the oper-
ation and collect the product,

Coordination:

Ambassador McBride has not been briefed on Project
LIEMPTY,.

Future Plans:

1. The surveillance units are expected to continue to
* produce valuable information in the form of photographic
coverage and visual surveillance reports on the daily
movements, personal associations, and habit patterns of
persons frequenting the Soviet Embassy, including Soviet
officials, Operational procedures and the project mecha-
nism will continue as it has in the past, oracert that Bruce
H, FERNALD, a new principal agent, will be in charge of the
operation (see Changes, paragraph 2).

2, The Project does not include an u%dated plan for
emergency contact during violent action or government over-
throw. The Station has been requested to prepare an up-
dated emergency contact plan and submit it to Headquarters

-in the first FY 1971 quarterly progress report.

Clee cP

rare |

-Costs:

6

, seq 7

Bete

d, General! $23,635 is requested for FY 1971. It

is requested. that the project be amended for. FY 1970 in the
amount of $10,498; (from $38,970: to $49, y 168) in order to :
cover termination payments to Raymond H. GERENDE and his
wife, LIEMPTY-19.

2. Source of Funds: Project LIEMPTY is included in

the Western Hemisphere Division's FY 1971 Operating Program
in the amount of $40,000. Funds for the FY 1970 amendment

will be absorbed in the current WH Division's finance
allocation. |

3, Project Budget : .
; FY 1970 FY 1971 FY 1972

i

Estimated Request Projection -
: Obligations _
Raymond H, GERENDE ,

Salary $ 6,500 $ -0- $ -0-
LIEMPTY~4 Salary 2,400 “2,640 2,640
LIEMPTY-9 Salary 4,320 4,752 4,752
LIENPTY-10 Salary 4,224 -0- ~O0-
LIEMPTY-11 Salary 2,736 -0- -0-
LIEMPTY-13 Salary 1,536 1,690 1,690
LIEMPTY-14 Salary 1,824 2,006 2,006
LIEMPTY-26 Salary — 672. 739 739
_LIEMPTY-27 Salary see 1,728 1,901 1,901
“LICALLA Safehouse Rent “ ~

, (HEXI-03) 1,248 1,373 1,373
LILYRIC Safehouse Rent

’ (MEXI-132) 2,880 2,880 2,880
Safehouse Utilities 1,100 1,200 1,300
GERENDE Dark Room Rent

; QMEXI-137) | _ 960 |, <0- -0-
MV-2823* and 2947 ’

Maintenance 1,200 600 600
Property Maintenance and

Replacement 500 500 . 500
Photographic and Other

Supplies 1,000 1,000 1,000
Christmas Bonuses 2,140 2,354 2,354
LIEMPTY-19 Termination
' Bonus 2,500 -0- -0-
GERENDE Termination Bonus 10,000 -0- -0~-

TOTAL $49 , 468 $23, 635** $23,735

*NV-2823 to be sold in FY 1970 and not replaced.
**#Decrease from FY 1970 figure due to GERENDE termination,
His replacement is covered under Project AEMAGNIFY.
pany
Ae he 7

ern

verv-al,

-9-

4. Foreign Currency: There is no special need for
foreign currency. lo non-CIA funds are used.

5. Commitments: Christmas bonuses to all agents”

totaling $2,354 for FY 1971, and termination pay in an
amount to be determined by the agents record and length

of service. - - :
6. Funding: Funds are hand-carried from the Station
case officer to FERNALD, and from FERNALD to the sub-agents,

The transfer of funds takes place under clandestine meeting
conditions, and appropriate security measures are always

taken,

7. Accountability: FERNALD accounts in detail to his
ease officer, who in turn submits receipts to the Station
and certifies that funds were spent to cover expenses for
which it was intended.

8. Annexes: None

5
q
4

‘
‘
as

14-0000

~ ’ on. SECRET oe

. om (then Palled Pry. we
* ~ J Pay “CMV T ON
PROJECT ACTION
a LISMPTY
TYPE OF ACTION: pores cA ~ ~
See eek rr
i (eG Western Hemisphere Division ____
# 3 AMENCMENT FUELO station ; x
_-.Hexico ier a
BRANCH - . -Orsm
. case ovelers ~ ss DATE
; Jack Barry 10 April 70
ROCwW AL. . BUILDING Lig : BLACK
3EOS Hos. 1973 4167

CONCURRENCES OF DIVISIONS

TYPED NAME (9nd aaensture)

ORGANEZATIONAL
EL CMENT

John .C.. Murray
liotte C. Want.

oe 7 CONCURRENCES OF OTHER COMPONENTS

(Type in Organisational Flesent ant Nawe Holow Only
When Concurrence Obtained dy Originating Element.)

APPROVAL

i aN ce PCRIOD AMT THES ACTION

‘{1 July 1970 [30 June 1971 |* 23,635

APPROVING AUTHORITY PSUSNATURE
A/onP
FORY BUS Eiirione SECRET


14-00000

|

‘ LISEPTY + Mexico City, Mexico -- Photographic Survoillance

Team Support -- FY 1971, Cost $23,635.
Fiscal Year Approved Obl igated

31966 HI, 145 » $36,294
1967 45,000 42,082
1963 42,185 42,158
1969 43,520 41,416

1970 38,970 49,463 (Prajected)
|

Purpose: ; |

Project LIGeTY supports s visual and photographic
surveillance of the Soviet Embussy in Mexico City. The
ain is to ideatify and cover the novermenta of pyrsons
entering and leaving the Rabassy, including Soviets and
visitors. The intelligence collected through such activity
contributes to the Station's overall Soviet operations
program, mainly in support of Priority A-1, but to some
extent, Priority A-d, of the Operating Directive for Noxico.

Description:

1. The Project operates through two fixed basehouse
surveillance posts, a email photographic laboratory, a
principal agent, and six sub-agentsa. A team of four sub-
agents, operating from a bagehouse, maintains visual and
photographic surveillance of the Soviet Embassy front
entrance. Ono sub-agent, operating from a second dase-
house, covers an area in back of the Embassy, where Seviet
officials meet, play and vork. These units photcgraph all
persons moving ip or out of the specific target areas: They
also maintain logs and provide written reports on observed
activity. All of this material ia passed to the principal ”
agent, who passes the fils to another sub-agent for procesa-
ing at a laboratory equipped for that purpose. After the
“film is processed and printed, the principul agent passes
the finished product, plus written reports and logs, to the
Station case officer. A brief description of each unit,
each agent and his rolo in the operation follovs.

Store T

1400000

ERASE aon es sree 53

oatig <

~ 2, LILYRIC (MXXI-132) ts a basehouse located near
tho front of the Soviet Exbassy. This house has been inp

‘ operation since October 1966. It is rented through
‘LIMOUSINE (201-5762), a cleared American businessman. He

4s the ostensible owner of record and, as the landlord,
collects rent frob. the tenante and then passos it to the
Station cage officer, LIENPTY-13 and his family (see
paragraph 3 below) live in the LILYRIC house and conduct
their survaillance operation from it during daylight hours

(0800-1800).

. 3. LIEBMPTY-13 (201--119961) is the key member of the
LILYRIC basehouse tean.. He maintains contact with the
principal agent and does sone photographic work. Hovever,
because LIENPTY-13 is employed outside a9 an industrial
engineer, he in unable to spend much time operating the
LILYRIC photograpbic oquipsent, and most of this work is
dose by hie wife, LIENPTY-l4, and their sons, LIESPTY-26
and LIEMPTY-27 (see paragraphs 4, 5 and 6 bolow).

4. WLIEMPTY~14 (201-~-167567) is the main photographer
and observer at tho LILYRIC basehouse. She works closely

with her husband, LIEMPTY-13, in running. the operation,
including the preparation of observation roports and logs.

‘She also does the LILYRIC housekeeping, as any housewife

would doa.

5. LIEMPTY-26 (201-762111), the aon of LIEMPTY-13 and
LYIEMPTY-14, bas been a atudent at the Hexican Technoloyical
Ipatitute. In his spare time hoe operatesthe LILYRIC phote~
graphic equipment, and helps LIEMPTY-14 iu maintaining the
arrival and departure logs of target personalities.

. 6. LYBWTY-37 (201-762112), another gon of LIEXIMTY-13
and LIEMPTY-14, has been a prep school student. He assists
in operating the LILYRIC photographic equipment and trap-~
Bcribea notes into a finished typewritten log of events.

7. %LICALLA (GSEXI-03) its a basehouse located behind
the Soviet Eubsesy. It has been in operation since 1937.
The building, a four-unit affair, collectively knoen as
LIMUST, is Agency owned. It was purchased through
LIMOUSINE in Soptexber 1957, and the property is in his
pane. Tho LICALLA site is cccupied by LIENPTY-9 (see
paragraph 8 below) and ha runs the surveillance operation

from it.

14-0000

nem eee

: eee |
a

8, LIEMPTY-9 (201-136454) ite the only ayent operating
from the LICALLA site. He does all the photography, main-
tains logs and prepares observation reports. He algo asin-
tains contact with the principal agent. LIEMPTY-9 is a
part-time insurance salesman and is self-employed in the
accounting business, which he conducts at the LICALLA site.

9. Raymond H, GERENDE (201~119523) has been the
princtpal agent for this project. ile is a Mexican national
contract agent who is self-employed as an English teacher
and also works as a salesman for a light bulb manufacturer.
GERENDE ‘has been mainly responsible for auintaining contact
with the LIEMPTY agents, paesing instructions to them, and
collecting the product for passing to the Station case
officer, He has also paid them and handled all other
admintatrative matters. He is being terminated by the end
of FY 1970 for security reagons (see Problems, paragraph 1),

10. Bruce H. FERNALD (P) (201-008185) replaced
GERENDE (see paragraph Y above) as the project's principal
agent in early December 1969. FERRALD, a U.8. Citizen bora
in June 1915, operates under non-official cover as a retired
immigrant. He is responsible for maintoining contact with
the LIEMPTY ayents and collecting the product for passing
to the Station case officer. He algo handlea adninistrative
matters, tocluding agent salary paysents. FERNALD ts
financially covered under Project AEMAGNIFY.

11, The LIEMPTY photographic laboratory (MEXI-137) is
located in a room at GERENDE's residence. It is equipped
to process the photographs taken by the LIEMPTY surveillance
units. The work is done by LIEMPTY-4. (See paragraph i2
below). Since GERENDE will be terminated by the end of
FY 1970, the Station is taking steps to establish a new
LIEMPTY photographic laboratory at a new safesite.

12, LIEMPTY-4 (201-117967) processes all the photo-
graphic film taken by the LIEMPTY photographers and uakes
the number of prints required. He does this work at night
in the LISMPTY photographic laboratory. He is self-employed
ag a medical doctor, and he is a brother-in-law of GERENDE,
in whose home the laboratory is located.

cren ays

Wele


14.90000

ee a eee.
wh

‘

- . tovoe \
~-+

\

Changes: : 1
1
1. The LIENTRAP mobile unit, constating of LIEMPTY-10 -
and LIEMPLY-11, is being removed from Project LIEMPTY and
Placed under Project LIEMBRACE, which supports a unilateral
physical surveillance team. . The purpose of this change is
to increase the aize of the LIEMBRACE team in order to meet
a growing demand for operational surveillance support from
the various Station operating sections, The transfer will
become effective at the beginning of FY 1971 and both \
FY 1971 project budgets have been adjusted to cover financial

‘aspects of the change,

2. Raymond H, GERENDE was removed ag the LIEMPTY |
principal agent in early December 1969 owing to a security
problem (see Problema, paragraph 1). He was replaced on
9 December 1969 by Bruce H, FERNALD, a career agent oper-
ating ‘under cover ag a retired immigrant, The change hag
caused some delay in the receipt of photographs because
FERNALD t9 unable to meet LIEMPTY agents as frequently as
GERENDE had met them, but operational effectiveness is not
significantly reduced by this delay. The key issue ig that
security and reliability of the principal agent have improved

considerably.

Accomplishments:

1. Project LIEMPTY has provided continuous daily
photographic and visual coverage (Monday through Ssturday)
of the front entrance and rear arens of the Soviet Embassy
in Mexico City. All Boviet personnel and their visitors
entering or leaving the Enbassy have been photographed. , In
addition, visual surveillance reports were prepared when
appropriate. These photographs and reports have contributed
essential operational support to the Station's Soviet oper- |
}
{
|
|
!

ations progran.

2, Recently, LIEMPTY photographs were exclusively used
to produce an updated mugbook on Soviet officials in Mexico.
The book has been loaned to the FBI, AF/OSI and the 903nd
Military Intelligence Group for operational use in debriefing
their agents engaged in dangle operations and double agent
operations against the Soviet services in Mexico City. One
902nd controlled agent was identified from an LIEMPTY photo-
graph taken when the agent tried to contact the Soviets at


Sapna

‘the Soviet Embassy tn Mexico City. Binilarly, an AF/OSI

controlled agent scheduled to mect a Soviet contact was
unable to do go owing to illness, but LIEMPTY photographed
another: person who appeared at the meeting site and this
person is believed to be the agent's Soviet case officer.
Such coverage has been helpful to the 902nd, AF/OSI and

_the FBI in running their controlled double agent operations
against the Soviets in Hoxice. oo. r _

3. Within one week after a biannual change of license
plates on Soviet Embassy vehicles, LIEMPTY had provided a

‘complete Jint of ‘the now tay numbers, slong with a complete

identification of the vehicles. Among other things, this
enabled the Station to identify the companions of Aleksandr
Aleksandrovich HIKITIN, a known KGB officer, during hie

last few days ip Mexico.

4. LUEMPTY has also determined that newcomers to the
Soviet Embassy frequently gravitate to groupings with their
RIS colleagues in the "safety" of the Kubassy backyard,
This fact enabled the Station to make certain tentative
KGS and GRU identifications. In addition, certain TDYers
have been linked up with their escort officers and clues
to personal relationships have occasionally been exploited.

5. In the field of Soviet patterns of activity and
associations, LIEMPTY has been able to report accursta
changes in certain apecific cases. LIEMPTY coverage showed
that NIKITIN, mentioned in paragraph 3 above, changed his
activity pattern following the defection of Raisa

Yerofeyevnn KISELNIKOVA, former secretary in the Commercial

Bission in Mexico. Tho sume applies to Oleg NECHIPORENKO,
a Second Secretary at the Rebasyy and a known KGB officor.
LIZUPTY also provided information on the patterns and
associationa of Yuriy Viktorovich KUPLYAXOV, a known KGB
officer and on Valeriy Viadimirovich SOKOLIN, s known GRU
officer. Coverage of Vladimir Viktorovich GOMUDEYEY, a

‘suspect KGB officer, showed that ho did, 1m fact, work in a

“restricted arca” at the Soviet Embassy end also established
who sone of his associates were. In ths case of Oleg
Konstantinovich IGNATYEY, who had arrived in Hexico City
from Caracas, Venezuela, LIEMPTY was able to observe
IGHATYEV entering and leaving in the company of Svyaatoslav |
Fedorovich KUZNETSOY, Press Attache and First Secretary of

the Soviet Embassy.

SECRET

IGNATYEY also visited the Soviet Fmbaasy

14-0000

Rinne

3

several other times during his stay in Mexico City and
had contact with other known Sovict inteiligence officers
while visiting. This kind of iaforeation is a basic
contribution.to the Station's continuing efforts to
identify and assess certain Soviets for possible
recruitment or defection.

6. At Headquarters, the Soviet Bloc Division uses
LIBMPTY photographs, particularly photographs of Soviet
Embassy officials, for identification purposes in con-
nection with defector cases. The LIENPTY material also
keeps the Station's Soviet section up-to-date on which
Soviet officers have been in the Sabtassy, which oves Save
been away; who has uged shich car: vio has been in contact
with whon; and other similar infornation useful io the

conduct of Soviet operations,

Probless:

1. A security probles has developed involviag
Rayaond H, GBRENDE. <According to GSRENDE, his wife wants
a divorce, apparently based nainly os incompatability of
personalities. The problen basieslly is that both want
custody of the children and this has sparked a dispute
that hag become nore bitter and yiolent daily. In addition,
the monetary settlepent is in dispute. The problea is
conpounded by the fact that GEREXDS's wife knows ip sone
considerable detail of GERENDE's activities on behalf of
the Agency. Thus, if the case coey go to court, it could
lead to the surfacing of GARENDS's Agency employseat and
possible compromise of LILYRIC, LICALLA and LIENTRAP,

Even if the case does net go to ceurt, GSRENDE's wife could
expose hin as an Agency enployee. Since late 1965, Mexico
City Station has been in touch with both GERENOS and his
wife on this problen, and every effort is being made by
the Station to have both parties settle the divorce cut of
court, and to protect GERENDE's cover and tiat of the
project. After weighing all factors, it has been cecided
that continued employment of GSRONDS is not an acceptable
risk, and the decision has been reached to terminate bir
by the end of FY 1970, GERENDE vill be paid a terninstion
tonus of $10,000 for 15 years service, about 31,250 sore
than the $8,750 hig contract calls for, in order to ensure
that the termination. is amicable and thereby preserve

ele wl

ears
ofu. al

a

project security. in addition, his wife, LIEMPTY-19 will
be given $2,500 ag a security measure designed to keep her
froa revealing what she knows about project operations. -
__The FY 1970 budget is. being amended to cover this Saount.

Other aspects of security continue relatively
unchanged. All the agents still have jobs to backstop
their Agency wages. The Station is compartmented froa
+he action agents through FERNALD, whose contact with the
sub-agents is reasonably well covered by his status as a
-petired 4immigrant. FERNALD has been neeting LIENPTY-9 and
LITENPY-13 since 9 December 1969. Brief meetings are held
once each week at pre-arranged times and places, well away
from the target aren. Occasionally emergency meetings are
called, by phone, if special coverage is desired. FERNALD
also meets LIXHPTY-4 to exchange films and prints. These
meetings are held weekly at pre-arranged times and placea.
FERNALD can change meeting plans by calling LIEMPTY-4
Girectly by telephone. In addition, LIENPTY-4 has been
given a special extension in the Station through whica he

.- may call as "Dr, Carlos" to leave a message for "Victor"

(FERNALD), The Station case officer maintains weekly clan-
destine contact vith FERNALD in order to manage the oper-

ation and collect the product.

Coordination:

Ambassador McBride has not been briefed on Project
LIEMPTY,.

Future Plans:

1. The survetilance units are expected to continue to
produce valuable information in the form of photographic
coverage and visual surveillance reports on the daily
movements, personal associations, and habit patterns of
persons frequenting the Soviet Pubassy, tncluding Soviet
officials. Operational procedures and the project secha-
nism will continue as it has in the past, except that Bruce
H. FERNALD, a new principal agent, will be in charge of the
operation (see Changes, paragraph 2).

2. The Project does not include aa up-dated plan for
emergency contact during violent action or government over-
throw, The Station has been requested to prepare an up-
dated emergency contact pian and submit it to Headquarters
in the first FY 1971 quarterly progress report.


rey
| ee
=8-
Costs:

1. ‘General: $23,635 are requested for FY 1971. “It.

ie requested that the project be amended for FY 1970 in the
_ epount of $10,498 (fron $38,970 to $49,468) in order to
 eover termination paynenta to Raymond E. GERENDE and his

“Sigite,, LIEMPTY-19. .

, 2. ‘Source of Funds: Project ‘LEEMPTY is included in
the Western Healsphere Bivision’s FY 1971 Operating Prograa
in the amount of $40,000. Fundg for the FY 1970 anendment
will be absorbed in the current WH Division’s finance :

allocation.

S$. Project Budget:
— FY 1970 FY 1971 ¥Y 1972
Estimated Request Projection —
Obligations 0
Raymond H. GERENDE .

Sslary 3 6,500 § -0- g -0-
LIB@TY-4 Salary 2,400 2,640 2,640
LIESPTY-9 Salary 4,320 4,752 4,752

~10 Salary 4,224 ~0- -0-
LISMPTY-11 Salary 2,736 -0- -0-
LIEUPTY-13 Salary - 1,636 1,690 1,690
LIEWPTY-14 Salary 1,824 3,006 2,006
LI=ENPYY-26 Balary 672 739 139
LISvPTY-27 Balary 1,728 1,901 1,901
LICALLA Safehouse Rent

C4EXI-03) 1,348 1,373 1,373
LILYBIC Safehouse Rent

QHEXI-132) 2,880 2,880 2,880
Sefehouse Utilities 1,100 1,200 1,300
GERENDE Dark Room Rent

(HEXI-137) 960 -0- ~0=-
W¥-2823° and 2947 :

Haintenance 1,200 600 600
Property Maintenance and

Replacement 500 500 500
Photographic and Other

Supplies 1,000 1,000 1,000
Christmas Bonuses 2,140 2,354 2,354
LIEMPTY-19 Termination

Bonus 2,500 -0- -0-
GEREXDE Termination Bonus _10,000 0- ___792

TOTAL $49,468 «$23, 835% $23,795

—_- oe _——_

exy_2823 to be sold in FY 1970 and not replaced.
ss2zcrease froa FY 1970 figure due to GERENDE terrination,
His replaceaent 18 covered under Project AEMAGNIPY.

wee oe

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14-0000

. eae - rote

Cine sce . : ;
1

j
. -9= i
: ; .4, Foreign Currency: There ia -no special need for
foreign currency. So non-CIA funds are used. woe

7 -8. Commitments: Christmas bonuses to all agents
_ totaling $3,354. for FY 1971, and termination pay in an
amount to be ‘determined by the agents record and length
of service.

6. Funding: Funds are hand-carried from the Station
case officer to FERNALD, and from FERNALD to the sub-agenta,
The transfer of funds takes place under clandestine meeting
conditions, and appropriate security measures are alwaya

teken.

7, Accountability: FERNALD accounts in detail to his
case officer, who in turn submits receipts to the Station
and certifies that funds were spent to cover expenses for
which it was intended,

8. Annexes: None


Cos unceassteieo =) -StERaaL, Cl cor rent = RY. secaET-
~~. ROUTING AND RECORD SHEET ——

Lib enicd, ©
Payet Corn

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_ SS GOSS DY secret =] CONFIDENTIAL «(] te oncy © ()_ UNCEASSIvIED

14.90000

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. : : oe an . actuan To: .
-. | STAFF 'R.VIEW OF FI/CE PROJECT ~—
~ La . _. _ zmf MPS/BO/FI-CE
onosee? 70 Rmendment $10, 498 | Projects {
| | FY 71 Renewal $23, 635 3c 43 :
\ ? .
|
+

HOUTING OFFICE Comernts

COMMENT FOR INTERNAL STAPF USE (Not to ¢o forward to the Division)
i

COMMENTE AND RECOMMENDATIONS (To 40 foreard to the Division)

The Ct staff concurs in the renewal of this extrevely valuable
operational support project. The Staff desires to be kept informad on
all security developments and repercussions resulting frou the divorce
probleas cf Gerende (P) and his wife. The Staff urces the Station to
continue its all-our efforts to keen this divorce out of the courts.

: |

Cy Sane Jt

pat? LD Bay 1970 ——

ate REVIEWING OFFICER . - . a at nan
Pia re ee a ee Par i, a oe ned pCO
FORM 6G cosouare Ouneiovs coMrios SECRET ree tra.z0. _
inkedet bot extemaon “ane

8-67
“mates |


14-0000

SECRET, =.

49 may 1570

. MEMORANDUM FOR : Assistant Deputy Director for Plans

a THROUGH . : MPS/BG-
SUBJECT §_—«:_—« Renewal of Project LIEMPTY

—— 1. WH Division requests renewal of Mexico City Station's
Operational Support Project, LIEMPTY, for $23,635 for Fiscal
- Year 1971 and a $10,498 amendment for FY 1970 to cover termine
..~ ation payments to a former Principal Agent and his wife, Last
year LIEMPTY was approved for $38,970, One agent termination
and the transfer of the cost of a mobile surveillance unit to
another projoct are responsible for the reduced FY 1971 request.

2. ‘LIEMPTY supports a visual and photographic surveil-
lance of the Soviet Embassy in Mexico City. It includes a
Principal Agent, Raymond H, GERENDE (P), and 6 subagents who
maintain two separate safehouses, one in front and one in
the rear of the Soviet Embassy, from which anyone entering or
leaving the Embassy can be observed and photographed. The
various members of the team handle and service the photographic
equipment, develop: and print photographs, keep observation
reports.and logs, including the arrival and departure of tar-
get persons, and maintain the two safehouses mentioned above,

3. This project does not provide positive intelligence,
except incidentally, It is designed to furnish a running
‘account, both photographic and in writing, of all Soviet
Embassy personnel and their visitors arriving at, or leaving,
the Embassy. Photographs taken by LIEMPTY personnel were
used to produce an updated "mugbook" on Soviet officials in
Mexico which has been loaned to other US security agencies
for operational use in activities targeted against Soviet
services in Mexico City. LIEMPTY agents also provided infor-
mation which enabled the Station to identify the companions of
known KGB officials, to identify the habit patterns of new
arrivals at the Soviet Embassy and provided a wealth of other
information of operational value concerning Soviet Embassy

activities, :
4. <A security problem, resulting in a Station decision

to restrict the activities of GERENDE, place him on half pay,
and replace him with a career agent (a valuable asset who

Vase i
Exclates nea astecatn
ja

SECRET

14-0000

™ SECRET -_

Coe
‘also handles SB operations) arose during the project year,
os ’.  GERENDEB has been having marital difficulties which may end .
aan in divorce, Along with other incompatible features of the
marriage, which havé resulted in numerous family fights, .
there have been long, bitter and violent arguments as to who
: : " will ‘have custody of their 4 children and concerning a mone-
7 Lo tary. settlements -. -The Station has become involved in these
a ne if altercations. bedguse GERENDE's wife 1s knowledgeable of his
a _ CIA relationship" and could,” 4f she chose to do so, expose him
Me as as an agency employee. « ~She has promised to keep quiet but
there 1g no assurance that she will do so. In view of the
risk . involved, should GERENDE'’s wife expose his agency rela-
- tionship and ‘in view of the fact that, despite his 15 years
of service and his undisputed ability and experience, other
unfavorable qualities militate against his retention, the
Station is considering terminating GERENDE, It is proposed |
to pay him a termination ‘bonus of $10,000 for 15 years of
service in accordance with Mexican Iaw and his wife $2,500 as
a security measure designed to keep her quiet. After discus-
--~ gion with the desk, FI Staff believes that, if GERENDE is .
paid the $10,000 termination money, it should not be given to os
him in one lump sum but should be paid on a monthly basis, VV
the-amount per month to be determined by the Station, thus
eliminating the possibility of his squandering it all at
once and possibly coming back for more of the same, The same
procedure should be followed in the $2,500 payment to his
_ wife. In bo$h cases at least an element of control is
- assured in that both GERENDE and his wife will know that con-
‘tinued receipt of their monthly payments will depend upon
their continued loyalty to the agency, In the meantime, we
feel this man, whose morale, and ability have been seriously
affected by his marital strife, given time, can perhaps be
rehabilitated and once again become a valuable Station asset,
This would ensure his continued loyalty and give him an income
out of which to pay his alimony. Aside from the foregoing
. there were no other problems, security or otherwise. All
ca meetings between the case officer and the new Principal Agent
are held under secure conditions, or more often if necessary,
at prearranged dates, times and places. Meetings between the
P/A and the subagents are held under similar conditions, The
- Station has been requested to submit an updated emergency re-
contact plan to be included in the first FY 1971 quarterly ,

program report for this project,

; 5. Agents’ salaries, safehouse rentals, motor vehicle
maintenance and travel, property maintenance and Christmas
bonuses will total $23,635. Despite the security aspects
related to the marital difficulties of ‘the erstwhile P/A,

SECRET


14-0000

“SECRET

‘

\
* this is an excellent ‘operation which has been described by
the Station ag representing a highly effective and highly
useful support mechanism. SB Division has stated that,

pl though relatively ‘inexpensive, it 1s a very worthwhile and
“valuable project.

FI Staff recommends approval with the
stipulation that the. recommendation with respect to payment
of termination. bonuses .to , GERENDE and his wife be carried out.

, ‘ : ; e-" de Silva

: Chief
: rr... Intelligence

Attachment
Project

1

SECRET


14-0000

TOF Te eRe me te Benet genet

PREVIOUS PROJECT ACTION

Se ear

14-0000

NO. 92
THIS PROJECT)

CHIEF, WH/B&F

{ DOCUMENT é FOR

NOTIFICATION OF

. ; =

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° SECRET FUNDING
(When Filled In)

’

DATE. 7) 2 f 29

PROJECT APPROVAL ACTION

; 10: CHIEF OF STATION (BASE)! 4.2. LE

| ATTENTION: FINANCE OFFICER
INFO:
PROJECT AE De pte! PAN AE ee

!  PYPE OF ACTION PERIOD OF ACTION 42.4.7 TO “4 2... 2y AMOUNT $__—
NEW PREVIOUS ACTION IN THIS FISCAL YEAR 2k 97p
RENEWAL _ TOTAL FISCAL YEAR APPROVAL a L220)
EXTENSION '
TERMINATION -FUNDS AVAILABLE FOR HQS USE : Fim)
AMENDMENT ~~. FUNDS AVAILABLE rr FIELD USE BS gd

"OTHER a. teed, fo AULEO

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PROCESSED APPROVED TYPE OF ACTION PERIOD AMOUNT
a
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14-0000

~~ SECRET ~ ;

PROJECT APPROVAL NOTIFICATION

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EXTENSION

APPROVING AUTHORITY .

PERIOO OF APPROVAL

2 ouly 1969 FINANCIAL

CODE
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SIGNATURE

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DISTRIBUTION

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OlVIsiON OLvISION CHIEF OF SUPRORT OFFICEA

bose 849 vse Previous SECRET

EDITIONS.

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14,0000

SERED lm

5 JUN 1969
MEMORANDUN FOR: Assistant Deputy Director for Plans -_
THROUGH 4 MPS/BG

SUBJECT = :_-*FY ‘1970 Renewal of Project LIEMPTY for $38,970

1. Project LIEMPTY, now in its eleventh year, is the Mexican
Station's operation which provides visual and photographic surveil-
lance of the Soviet Embassy from safehouses at the front entrance
and back of the building, as well as from a mobile unit. All Soviet
personnel and their visitors coaing to the Embassy are photographed.
From 1 November 1967 to 31 December 1968, approximately 21,367 photo-
graphs were taken and thousands of pages of surveillance reports were
completed by personnel .in this project. SB Division is pleased with
the quantity and quality of the photographs and the Station finds them
useful for operational purposes against the SB target. During the
past year several U.S. citizens entered the Soviet installation in
Mexico City and thefr photographs were identified by the FBI. There
is a good relationship between the Station and the FBI in Mexico City
and appropriately sterilized photographs are passed locally.

2. There have been no significant security problems. ©

3. The only changes in the project have been the elimination of
one of the safehouses, which was used as an observation post, and .
termination of the agent who attended it. No real Toss resulted from
this change since the safehouse was so located that photographs taken
from it overlapped those taken from another safehouse. The agent who
serviced the facility was getting too old to do an efficient job and
was terminated amicably. Also during the past year a new agent was
added to the project.

’ 4. Total funds requested for FY 1970 are $38,970. Salaries and
Tegally required bonuses for nine agents come to $30,080; safehouse
rental and maintenance amounts to $6,188; maintenance of two vehicles,
$1,200; and photo and operational expenses, $1,5CO0. FY 1969 approval
was for $43,520 and-estinated obligations for this period are $43,500.
A new, $5,000 vehicle was purchased in FY 1969 and none is needed in
FY 1970 which accounts for the reduction in costs for the present year.

‘

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my SECRET “

|

\

3 5. Project LIEMPTY contributes substantially to. the Mexican

: Station's SB-effort. The occasional identification of U.S. nationals
in contact with the Soviets could have an important bearing on National
Security. The operation. #s handled by an experienced and capable, .
: outside contract’ agent under the direction of a Station officer which
:. provides good security and personne] economy. It is a well mariaged and
: productive operational support mechanism necessary to Station opera-

tions. FI Staff recommends approval.

Peer de Silva
Chief
Foreign Intelligence

Attachment
Project :

SECRET

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CQENT FOR INTEANWAL BTAFF USE (Not to go forvaerd to the Division)

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SECRET

22 nf 1969

MEMORANDUM FOR: Deputy Director for Plans
SUBJECT : LIEMPTY Project Renewal (FY 1970)

1. Renowal is requested for the LIEMPTY Project for
the period 1 July 1969 through 30 June 1970 (FY 1970) in
the amount of $38,970, Funds are available in WH Division.

~ $45,000 was programmed: for FY 1970,

.2. LIEMPTY is a project supporting Soviet operations
of the Mexico City Station, It provides for two basehouses,
a photo surveillance vehicle, and personnel for photographic
and visual surveillance of the Soviet Embassy. Presently,
two fixed surveillance points near the Embassy provide the
location from which the photographs are taken and observers

are stationed. One basehouse is adjacent to the rear of the

Embassy, where Soviet officials meet, play and work, The
other basehouse is across the street from the front of the
Embassy and gives a direct view of every person entering or
leaving. There is also a mobile photographic unit (a VW

van) which 1s now used in support of all Mexico City Station
operations and in conjunction with the LIEMBRACE surveillance
tean (used primarily against Soviet targets). Raymond H,

~ GERENDE, an indigenous contract agent, is the principal agent

of the operation and meets daily with the basehouse keepers
and subagents.

3. LIEMPTY contributes significantly to the Station's
Soviet operations program and is considered an essential

‘element of the Station's support apparatus. During the

period 1 November 1967 through 31 December 1968, approxi-~
mately 21,367 photographs were taken. In response to a
request to SB Division for an evaluation of the project, the
following comment was received: "There are few such sources
of high resolution phetographs of Soviets, especially giving
good side views. These photos are welcomed by SB Division
since they furnish a steady flow of up-to-date identity
data..." The photos are useful to the Station in confirming
the identities of Soviet porsennel and visitors to the

SECRET

Enbassy, some of whom are U,. S, citizens. During the past
year, several of these U, S,. citizens were identified with
the help of the photos (which were passed to the FBI).
Furthermore, the movements and habits of the Soviets are
woo Studied, and more knowledge is acquired on their friends
an - and associates, especially Mexican nationals. This informa-
Sone . ‘tion is useful in target studies. For example, the senior
. TASS representative, a known KGB officer, is a recruitment
. . target. He is under intensive operational scrutiny for
wale leads developed from knowledge of his activities and contacts,
. oF '  LYEMPTY support is an integral part of this current develop~

mental activity. . : -

-. 4 During the past year, one of the three basehouses
a was closed, leaving two, and the agent attending it was
terminated, This was done because the agent was becoming
less effective with age, and because there was some over-
lap between the photos taken from this basehouse and those
of another. The termination was amicable, and the working
hours of the personnel of the other basehouse were extended
: slightly. Another agent was also hired to help. This new
a agent is of the same family as the rest of the personnel
occupying the basehouse, and no additional security risks are

anticipated from this addition.

5, There have been: no security or administrative prob-

Jems. The Station and GERENDS are constantly on the alert
for any sign that the Soviets are aware of the surveillance
activities. While it is quite possible that the Soviets are

. aware of the surveillance, so far indications are that they
are at least not fully aware, since no effort is made by
them to avoid being photographed, even when having meetings
with contacts in the rear of the Embassy,

6. Approval is recommended of this valuable operational’
support project.

; aJéhy in,

William V. Broe
Chief
Western Hemisphere Division


14-0000

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: 13 December 1967

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14.90000

APPROVING AUTHORTY

PERIOD OF APPROWAL

2 Becanber 1967

FROM

CONDITIONS OF APAROWAL

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Division

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SECRET
PROJECT APPROVAL NOTIFICATION

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ACTION. "APPROVAL LEVEL [Tl REVICRINS COMPONENTS 5
OIviston on starr x [evors x] CO CT

ROUTING OFFICE COMMENTS

COmetnt Foa INTERNAL stare use (Not fo gu faresrd to the Diviaion)

COMMENTS AND RECOMMENDATIONS (To go forward tc the Division) :

The CI Staff concurs in the renewal of this extremely valuable
project. The Staff strongly urges that the Station continue to be
constantly alert for any Sov. interest in the project's agents and
installations and in particular any Sov. investigation or activities
against same--also, Station contingency plans should be formulated

to cope with such Sov, interest or activities. :

REVIEWING OFFICER
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foaw 526 QGSOLETR PREVIOUS EOITtOe SECR ‘pana nee] i19.20.40)
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_ PROJECT :
ACTION :
PURPOSE :

PROGRESS ;

FUNDS):

om, —
| SECRET
Be paler
PROJECT BRIEF ING
LIEMPTY WH = Mexico ;
ADD/P approval of renewal (19 mos.) 1 Dec 67 = 30 Jun 69°

An operational support project providing three basehouses and
a mobile surveillance unit to monitor primarily the Soviet —
Embassy, its personnel and its visltors, by physical and photo«
graphic surveillance.

BACKGROUND: ‘The project covers three properties near the Soviet Embassy ,

(two in front of the Embassy's sole entrance and one behind the
garden) from which visual and photographic surveillance is carried
out. It also covers a darkroom and @ mobile photographic truck.
Some of the project personnel are used at times for miscellaneous
support tasks such as servicing postal boxes and for counter=
surveillance and other protective services.

During the past year the project provided nearly o11 of the opera-
tional photographs and physical surveillance reports used in the
Station's Operations against the Soviet Embassy and its personnel.
$B Division says, "This rather unique operation has unquestionably
made a major contribution to the increasingly effective Soviet
Operations program of the Mexico Station,”

The project produces primarily operational data and counterintelli-
gence information, It provides leads, evidence of which Soviet
officers have been in the Embassy and which ones have been away,
who has used which car, who has been talking to whom or golng out
of the building with whom. (One photograph from this project was
used in the Warren Commission Report.

$69,725 (19 mos.) (Programed FY 69 $46,000)

FY 68 (7 mos.) FY 69

Salaries (9) and bonuses $19,475 $32,020
Vehicle maintenance 1,165 2,000
Rent and utilities 4665 8,000,
Equipment 300 500
Operational expenses 600 1,000

$26,205 $43,520

14-00000

SECRET.

1

PREVIOUS

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APPROVALS:

* 3 Dee 58 = 30 Nov 59

95 5380

FI and CI Staffs concur.

STAFF
RECOMMENDATIONS

SECRET,

MEMORANDUM FOR; Assistant Deputy Director for Plans

THROUGH: MPS/BG
SUBJECT: Project LIEMPTY

1. WH Division requests renewal of LIEMPTY for the
19-month period 1 December 1967 through 30 June 1969 in
the amount of $69,725. While this represents a slight
reduction-on a pro rata basis from the $45,000 for which
LIEMPTY was approved for the 12-month period starting

“1 December 1966, it reflects a proportionately modest

increase in cost for the 19-month renewal period over the
estimated total disbursement of $40,130 for the past
project year. This will provide for small salary increases

“ to meet the rising cost of living for certain of the agents

involved in the project who have not received raises in
some time as well as for slightly higher rental fees for
the various basehouses. The project, now in its tenth
year, is designed primarily to provide for the collection
of operational information on the Soviet Embassy in Mexico

City, including the identification and muvencnts of its

personnel and visitors. To this end, LIEMPTY. provides

for the maintenance and exploitation of threé basehouses
for fixed visual and photographic surveillance of the
Soviet Embassy and a mobile basehouse in the form of a
panel truck used for moblle photography against the Polish
Embassy, leaders and mecting sites of local communist
parties, and other targets of opportunity. An important
corollary objective of LIEMPTY is operational support in
the form of countersurveillance for Agency personnel and
operations, including those of other bases and stations

as the needs and requirements of the Mexico Station permit.
The funds requested include $43,520 for the period 12
Décember 1967 through 30 November 1968 and an additional
$26,205 to cover the period 1 December 1968 through 30
June 1969. The latter tunds are asked for in a supple-
mental request to put the project on a fiscal year basis.

2. <A long-term contract agent and eight other support
agents are involved in the management and operation of the

14.90000

LIEMPTY facilities and in surveillance activities directed
at the primary Sovict target. Some of these agents are
used also'in dark room photographic processing, letter
drop, and, on occasion, moving surveillance activities.

3. This project is only part of the complex:of

‘Mexico City Station instruments for meeting requirements

from a number of U.S. agencies, including the FBI. [t=
is clearly an effective, well-managed support operation

serving important needs.

4. No major or significant changes in LIEMPTY
personnel or operational techniques have been introduced
nor have there been any known incidents adversely
affecting. the security of the project or its personnel
since the previous project renewal period. As a uni-
lateral operational support effort, LIEMPTY cont inues to
be a most useful station asset supporting a number of
station activities. In spite of small increases in costs
as discussed above, the project is considered to be holding

the line on cost and personnel.

5. The objectives of project LIEMPTY are tn direct
support of priority A objectives 1, 2, and 4 of the current
Operating Directive for Mexico. It is considered by SB
Division to have made significant contributions to the
Station's well developed, high priority Sovict Operations
Program. During the past year the various LIEMPTY base-
house installations produced valuable information in the
form of photographic coverage and physical surveillance
reports on the daily movements, personal associations and

: habit patterns of selected targets of special interest.

In numerous instances this coverage confirmed the specific
intelligence service connections of Soviet officers in the
Embassy. Often the identities of Mexicans and nationals of
other countries in contact with the Soviets were estab-
lished. The mobile panel truck unit was exploited regu-
larly to provide information on not only the Soviets but
also the Cuban target as well as local Communist Party

targets.

/» Glenn Fields
Chief
Foreign Intelligence

Attachment
Project


14-00000

per

LIEMPTY PROJECT RENEWALS

THROUGH FY 1968

(RENEWALS FOR FY 1969 AND
FY 1970 ARE IN PROJECT
RENEWAL FILE)


14-0000

or

; 4
ernss oa
nd | MPS/BG/FI
. 1Jan 67 °°
PROJECT BRIEFING
PROJECT: LIEMPTY . WH - Mexico City

ACTION ; ADD/P approval! of renewal 1 Dec 66 - 30 Nov 67

PURPOSE: Provides stationary surveillance against the Soviet Embassy
and a mobile photographic baschouse which is used primarily
against the Polish Embassy and local Communist party leaders.

- PROGRESS: Three basehouses (LIMITED, LILYRIC and LICALLA) pro-.
vide coverage of both the front and rear of the Soviet Embassy,

Throughout the past renewal period each operational component
contributed- actively and concretely to the fulfillment of the
operational tasks levied on the Station, In the first nine-month
period approximately 17,000 individual frames of operational
photographs were provided from the fixed basehouses, These
served to confirm the identities of Embassy personnel and
their visitors and provided detailed reporting on the movement
and habit patterns of selected targets of special interest. The
mobile unit (LIENTRAP) provided over 1, 000 individual photo--
graphs. Of particular value were photographs of local and
exile Communist leaders, Raymond H. GERENDE (p) continued
in the role as principal agent for Project LIEMPTY, His overall
operational assignment involved at least 12 clandestine mcetings
per week, in addition to his meetings with the LIEMPTY project

oo case officer,

PROBLEMS: In mid 1966 LICOWL/1, who owns a small store near the
Soviet Embassy, reported that a Sovict official had approached
him and asked him to inform on his neighbors. Reportedly the
Soviet named LIEMPTY/6 of the LIMITED basehouse by name
and also asked about the tenants of the building housing LILYRIC,
However, in view of LICOWL's previous history of lying, it is
difficult to assess exactly what the Soviets requested and just
what LICOWL/1! may have told them. The Station is still looking

into this development,

arnnny

. . ‘ oracey

FUNDS : $45,000 . $29,020 in FY 67

Programmed for $45,000 FY 67

Salaries: -
GERENDE
Others (8) See
: Vehicle maintenance (2)
Rent and utilities
' a ; Equipment maintenance and replacement
Miscellaneous operational expenses

PREVIOUS .
APPROVALS: 1 Dec 65 ~ 30 Nov 66
1 Dec 64 - 30 Nov 65
1 Dec 63 - 30 Nov 64
3 Dec 62 - 30 Nov 63--
1 Dec 61 - 30 Nov 62
1 Dec 58 - 30 Nov 59
STAFF

COMMENTS: FI aad CI Staffs concur in renewal,

$15,980 in FY 68

$ 7,000
23,900
5, 000
7,600
500
1,000

$41, 500
45, 300
49, 700
49, 900
49, 500

95, 380

CISTAFF: Strongly urges the Station to continue its close

monitering of Soviet interest in the installation buildings and
: attempts to obtain information on sensitive project personali-
: ties. The Station should devise necessary contingency pians
of action to eliminate any security hazards if it is determined
that the Soviets are intensifying such efforts and could be
getting "too close" to the project installations, personalities

and activities.

14-00000

cia ‘ SR
; re er | .
‘ '
td oe be Ve

8 AN 1965

4
4

MEMORAIDUM FOR: Assistant Deputy Director for Plains
; .

TUMROUGE: nrs/BG
SUBJECT: Project LIEMTY

1. This action geeks renewal of Project LIT covering
Merce City Station's stutlonury surveillance basecrhounes alined
against the Sdviet Enburcsy. | activity will cost g49,0C0 ror
the period 1 Deceaber 1565 to 30 Novesker AYYPOVal is

recamsended. :

2. Fr oject LIRMTY hes been in being for aise yours. At
present i supports three stationwry basehouses near the Soviet
Emoussy and a moblle photeyraphic baselouse. These are used ta
obtain ghotowreshte coverage and logs of Soviet sovesents and
visitors to the Soviet Bxuassy. The mobile bagshcuwse is used
also to coves meeting sites of the locul comeucist purtles and

turgets cf opr ortunity.

3. a prineipal ageat and eight agents are used in the
LIEMEIY activity. Che agents are variously employed us busehouse
keepers, photo lab techni¢clans and surveillance operators.

4. Seeurity hes been generally gocd ulthough one incident
ceuurred ta and 1266 which muy have some dimpact on the future
security ef the operation. An appreach wus made to an ugent of
the Station, who owns a siajl store near the Soviet Eubassy, to
report on his neighbors wacng whom are soue ot the LLMDLY age.ts.
One, LISMPTY-¢, was wentioned by name. The Station is vatehing

this davelopuent curefully.

>

The LIEMPVY activity proved its worth during the past
made on conflicting stories tsid by two
Station agents. The LIQMPIY surveillance veports proved that ane
of the agents was lying about his contacts with the Coviets.
LISMrry is well sanuged and continues to Seive an iaportant Mexico
City station need.

Lh
tre

year vhan check Ww.

t
dligy reat


Lay SECRET a

(Wee Filled tn? ;
FSET caveroayw

PRAECT ACTION LIEMPTY

wre FeQUECT SLUTS In
APPR SAL Western Hemisphere Division

FUER STATION *

Mexico Cit

Reateaa wae. 4 ‘
fy se 7-68 One. a .

EXTENS HEN SRST OFFICER et gare

en Bust6s-Videla 18 Nov.'68}:.. .
te $32 Anes 3654 FE ae
: COMCURRENCES OF DIVISIONS : :
W. J. Kaufman £:'°7060.4 y

hnovere Ss

onald C, Mareliu
Willian V.

Dare ePy MEMS ATTACHED
NO. Pres [oT bare

APPROVAL :
aWT Teas alTion FY REVISED TOTAL a
: po
> Y .

45,000.00 | 2-875 15,980

oP aPracving auTacrity

A/DDP

cnr gua eiiees SECRET (a a

14-00000

“ SECRET,“

MEMORANDUM FOR: Deputy Director for Plans

SUBJECT : LIEMPTY Project Renewal

1. It is requestcd that the LIEMPTY Project be
renewed for the period 1 December 1966 through 30
November 1967 for a total. of $45,000: $29,020 for
FY 1967 and $15,980 for FY 1968, The Project is ine

“cluded in the FY 1967 Operational Program for $45,000,

Funds are available within WH Division.

2. \LIEMPTY covers stationary surveillance base-
houses targeted against the Soviet Embassy, These
basehouses provide photographic coverage and logs. Two
of the basehouses (LIMITED and LILYRIC) cover the
activity in the front of the Embassy, and LICALLA provides
coverage of the back courtyard area, The LIEMPTY project
also covers a mobile photographic baschouse in the form
of a panel truck which is used against the Polish Enbassy
where we have no permanent surveillance basehouse, and
against other targets. of opportunity.

3. The value of Soviet Embassy photographic cover~
age during thé- past year was proven when the logs
maintained by LILYRIC were used to double check on-an
operation involving LIRUSTIC-1 and LICOWL-1 who had told
conflicting stories of certain events concerning the
activity of some Soviets. Through the surveillance

reports of the LIEMPTY Project against the Soviet Embassy,

it was proven without a doubt that LICOWL-1 (who had just
taken a polygraph without apparent deception) was lying
about his contacts with the Soviets.

4. The LIENTRAP mobile photographic basehouse was
targeted against leaders and meeting sites of the local
Communist parties as well as other targets of opportunity,
particularly exile Communist leaders now residing in

Mexico, LIENTRAP provided up-dated identification


14-0000

“ SCRE. «= |

: -2-
photographs of Communist officers which are of value

to both the JNMTIGER program and the Station's ' |
recruitment/penctration program. The LIENTRAP ‘
personnel also regularly service twenty-one postal
accommodation addresses used by the Mexico City a
Station. : ‘

5. One development which may affect the security
of the LIEMPTY basehouses of LIMITED and LILYRIC
occurred in mid 1966 when LICOWL-1 (who owns a small :

. store near the Sovict Embassy) reported that a Soviet .
official, AEQUALITY-1, had approached him and °
requested him to inform on his neighbors. Reportedly |
the Soviet named LIEMPTY-6 (of the LIMITED basehouse) |
by name and also indicated all the tenants (unnamed)
_of the new building which now houses LILYRIC, The :
Soviet pinpointed the building by saying the one being |
built by a person who fit perfectly the description of:
LIMOUSINE. LICOWL-1 did not indicate that the Soviet -
reflected any interest in LIMOUSINE. The occupants of
the LILYRIC basehouse were not mentioned. LICOWL-1
indicated to his Station contact that the only person
he really suspected an the neighborhood was LIEMPTY-6
(of LIMITED) who doesn't go to work, is always typing,
' lives comfortably. and owns a car, He claims to have -
heard it rumored that LIEMPTY-6 was working for the ; |
Americans. (Since LIMITED is cquipped with a radio ‘
and tips off the Station's surveillance team when it
‘is used against Soviet targets, Headquarters has
already assumed that the Soviets have identified this
baschouse.) LICOWL-1 also listed several persons
named by the Soviet who had no connection whatsoever

with CIA,

6. The Station instructed LICOWL-1 not to become
an informant on his neighbors, According to LICOWL-1
he therefore told AEQUALITY-1 he did not have time to
collect the information the Soviet wanted. However,
in view of the lies LICOWL-1 has been caught in, it
is difficult to assess exactly what the Soviets asked ‘
of LICOWL-1 and just what LICOWL-1 may have told the
Soviets.. The Station is still looking into this develop-

ment.
7. WHD recommends renewal of this —

haf lian ’ Calan

Chief,
Western Hemisphere Division

SECRET,


y4-00000

PREVIOUS PROJECT ACTI ON

14.90000

. ay . . Pity

era F
elucch E
- DoP/ee/FI
: 9 Feb 66 . j
PROJECT BRIEFING ;
PROJECT: LIEMPTY _ WH = Mexico
ACTION : ADD/P approval of renewal 1 Dec 65 = 30 Nov 66

PURPOSE: To provide support for mobile and stationary photographic
surveillance of the Soviet Embassy and a dispatching base
for a physical surveillance team.

PROGRESS: Assets included under the project include three base-
houses which provide front and rear views of the Soviet
Embassy, and a panel truck equipped for spot photo
coverage. Raymond H. GERENDE (p), principal agent,
meets the baschouse keepers regularly, maintains regular
contact with the mobile photo unit and with tho develop-
ing and processing base. He also verforms many other
support functions.

The phetographs from all these operations have been of
value to the Station in operational planning, for
identification by survelllance teams, for mug books, and
for Headquarters permanent files. The Station believes
that this operation is essential to the fulfillment of
the overall operational program levied on the Station by

the RMD.
FUNDS : $41,500 * $25,520 in FY 66 $15,980 in FY 67

(Programmed for $50,000 in FY 66)

Salaries”

GERENDE $ 7,000
Basehouse keepers (3) 10,100
Mobile unit operators (2) 7,000
Lab personnel (2) 3,600
cut-out . 2,200
Vehicle maintenance (2) 2,000
Rent and-utllities 7,600
Equipment maintenance 1,000
Miscelianeous ops expenses 1,000


“a,

SEGEET

PREVIOUS

APPROVALS : 1 Dee 64 = 30 Nov 6 $45, 300
1 Dec 63 = 30 Nov 6 49,700
1 Dec 62° = 30 Nov 63 49,900
1 Dec 61 = 30 Nov 62 49,500
1 Dec 60 - 30 Nov 61 53,000
1 Dee 58 - 30 Nov 59 95,380
_ STAPP

COMMENTS :. FI and CI Staffs concur in renewal.


14-0000

.
oa]
fe

SECRET

‘oop . (when Filled In)

“Ct CAvrTonym

LIEMPTY

TYPE CF ACTION

NEw PROJECT Onvesion .
APPROVAL Western Hemisphere

° ae FIELO eTation oe
nh, Lo Mexico City

RENEWAL
was fy Mexico

CASE OFFICER, Nay
C. Bustos-Videla 5

: aw ROOw NO. BUILDING
: GH-43 Hdqs

OO NOT USE

DATE

THIS SPACE

S . .
‘ SEAS NO,
-s/Robert E. Anderse ly pob 66.
: lr aanes| | | ||

ieenovine umORT a 534 stant
Deputy Director for Plans

Fou OBSOLETE PREVIOUS
6.65 S48 corrioss : Soper


- . *.4FEB 1086

MSMORANDUM FOR: Assistant Deputy Director for Plans

THROUGH: DDP/PG
SUBJECT: Project LISMPTY Rereval

1. FI Staff recammends approval of the renewal of Project
LIEMPTY. This project, costed at $51,500., supports the following
Mexico City assets: a panel truck used for mobile photography,
three base houses for fixed photographic surveillance, a contract
agent manager and eight support agents. One of the base homes is
used as a control point to dispatch a surveillance team. (The
latter is not a part of the project, however.)

2. The LIEMPTY target is the Soviet Embassy and Soviet
activities in Mexico City. LISMPTY is part of the complex of
station instruments by means of wich requirements from a variety
of U.S. agencies are met. One cf the sites provided pictures
later used in the Warren Cocmission Report, and the publication
of the report created a security hazard. The Station moved the
site and it is now back in operation.

3. The possibility of Soviet intercept of rudio commo to
the surveillance team has been carefully weighed recently by SR,
the desk, 0/C and TSD. The decision to accept the risk appears
to have been taken with due deliberation.

4. This is clearly an effective, vell-managead operation
serving an important need. We recommend renewal without hesitation.

, hehe i of lL devvee!
7 W. LLOYD GEORGE
i ; Chief «
Foreign Intelligence

Attachment : ;
Project i :

Jee LL

14.90000

> a -
SECRET

30 nzC 1965

MEMORANDUM FOR: Deputy Director for Plans
SUBJECT | : Project LIEMPTY Renewal Request

1. Renewal is requested for the LIEMPTY Project for
the period 1 December 1965 through 30 November 1966 for a
total of $41,500; of this amount, $25,520 should be
alloted for FY 1966 and $15,980 for FY 1967. This Project
has been programmed in FY 1966 for $50,000, The last
Project Renewal was approved at $45,300. Funds are
available within WH Division,

2. The security of this Project appears to be good.
The LIENTRAP photo truck was repainted a different color
in January 1965 to preserve the security of this vehicle
which operates extensively in the same general areas, There
have been no apparent ramifications from the publication
of the LIMITED Photograph in the Warren Commission Report
in September 1964,

3. LIENTRAP is one of two mobile photo surveillance

-units at the Station, both of which are used extensively

because of the many requirements for spot photo coverage
of diplomatic installations, agent mectings, and current
identification photos of targets among others.

“4, Although there are three stationary photo
baschouses under this Project all targeted against the
Sovict Embassy, there is very little duplication of
effort, and the coverage of this Embassy would be weakened
through the termination of any of them. LICALLA covers
the rear of the Embassy (garden and parking lot) and is
in a unique position to observe informal meetings and
activity there. In May 1965 a thorough assessment was
made of this basehouse to determine whether an audio
installation could be based here, directed against these
garden conversations. It was determined that due to the
high incidence of street and other noises, this was not
practical. FSD and SR Divisions are conscious of this
requirement, however, and if any new equipment is
developed which might make this operation more feasible
it will be tested. LINITED and LILYRIC which both cover
the front entrance, provide coverage during different
parts of the day, and LIMITED also serves as a fixed radio

SECRET:

ry oe)

dispatching base for the LIEMBRACE surveillance tean,

S$. The photographs from all these operations are of
value to the Station in their operational planning, for
identification by surveillance teams, for mug books, which
are often used by surveillance teams and singleton agents
in identifying Soviets, and for Headquarter's permanent

files.”

6. With reference to the FI Staff comment made last
year at the time of the Project renewal that the radio dis-
patching from the LIMITED installation might have made this
base a tarcet for the RIS, the preblem was discussed in depth
with the. Office of Comrunications, TSD, and SR Divisions.
The Statiox: has been alert to the Soviet's monitoring capa-
bility and they have developed a signaling system and inter
car communications system that will leave the LIEMSRACE
surveillance cars on the sir for a minimum of time, and
with limited open conversation. The result of Headquarters
and the. Station's research on this problem resulted in the
conclusion that, if a surveillance team is to operate with
automobiles, radios must be used if there is to be efficient
surveillance, and regardless of what presently availak le
type of scrambling or coding is used, radio is susceptible
to monitoring by the opposition. It was therefore concluded
that if the Station is to use the LIEMBRACE team against
members of the Soviet installation, LIMITED must continue to
be used as the radio dispatching center and the risk factor
must be accepted until some new, more secure yet efficient
commo system is devised,

7. The reporting en the administration of this Project
is handled through regular quarterly procress reperts, The
appropriate Soviet, CP, or other Case Officers handle the
reporting and exploitation of the product. During the past
year there were no positive intelligence reports from this

Project.

8. Both SR and WH Divisions recommend renewal of this

Project.
Sy:
by elf: Gale

an VY. Brae
Chief
Nestern Hemisphere Division

te

14-0000

MEMORANDUM FOR: Chief ‘of Operations, DD/P
SUBJECT : Project LIEMPTY (Renewal)
WH - Mexico City

1. The attached project, originating in WH Division,
is presented for renewal) for the period 1 December 1960
through 30 November 1961. The project provides for physi-
cal and photographic surveillance operations in support
and exploitation of other Mexico City Station operations,
particularly those targetted at Soviet personnel and in-

stallations, ‘

2. Authority is requested to obligate $53,000 from
the DD/P-WH Division budget: $31,900 in fiscal year 1961,
and $21,100 in fiscal year 1962, subject to the availabil-
ity of funds. The amount includes $38,000 compensation
for two principal agents, one clerical support agent on an
hourly basis, and eleven surveillance and support agents;
$7,000 operational expenses (safehouse procurement, post
office boxes, rented automobiles, purchase of information,
vehicle maintenance, and cperational travel); $2,500 re-
placement, repair and maintenance of photographic equip-
ment; and $5,500 basehouse rental, utilities, and mainte-

nance.

3. The field's renewal request, supported by a cover-
ing memorandum of the Division, sets forth accomplishments
of the project in the past year in terms of objectives and
estimates effectiveness. It is noted that one principal
agent, Simon D. CLACKETT (p), resigned in October 1960, and
the four-man surveillance team previously handled by him
will be transferred to project LITEMPO, coimsequently being
omitted from LIEMPTY in this renewal. Three basehouses con-
tinue to be operated under the project: (a) LIMITED, which
compiles daily logs on arrivals and departures from the
LIMERICK installation, together with attendance lists of
LIMERICK employees, and handles the radio dispatch of the
LIEMBRACE surveillance team on LIMERICK personnel and targets

SECRET,


14.90000

en: ee

of opportunity. This basehouse also provides photographic
coverage, concentrated on visitors, (b) LILYRIC which pro-
vides clandestine photegraphs particularly of visitors -to,
as well as employees of, the LIMERICK installation, prepares
weekly reports on LIMERICK employees and their wives, and
reports on license numbers of sil cars visiting the instal-
lation. (c) LICALLA, which ccncentrates on photographic
coverage of LIMERICK employees and their families, as well
as providing observation on the apparent positions and jobs
of the target employees, and as well as persomel changes.
Additional photographic coverage is provided by the mobile
LIENTRAP vehicle. Principal agent Raymond H. GERENDE (p)
continues to coordinate basehouse activities; princlpal
agent Oliver G. SCANTLING (p) ccntinues to be an independent
asset used to follow-up and exploit operational information
on target personnel and Installations, to case various in-
stallations of interest, to acquire oroperty, etc. SCANTLING
has managed the surveillance team being transferred to
LITEMPO in the interim rollowing the resignation of CLACKETT.
The Station notes that activities at the LICALLA basehouse
were suspended in September 1960 as the result of the ar-
rest of a knowledgeable TSD technician in another area and
it is not known precisely when it will be possible to re-
sume these operations. The Station believes that the
GERENDE segment is now operating under optimum arrangements
and SCANTLING will soon be relieved from his interim respon-
sibility for the surveillance team being transferred to
LITEMPO and can concentrate more on his investigative and
casing activities. It is not planned in the coming year to

expand project activities.

4. Appropriate Special Staff comporents concur in rec-
ommending renewal. FI Staff notes the Division's assurance
that the transfer of the unilateral survelliance team to
LITEMPO will not affect its independent status, and remarks
that the current project review presents a clearer plcture
of the usefulness of the several segments than the previous

one,

14-0000

a

5. I recommend renewal of Project LIEMPTY as pre-_
sented.

a

5 00) Zs Ln4
‘S. M. HINES
Chief, DDP/Fa

7 yt al
Approved: aAeryordddedonn—- ares -
= ave

Attachment: Staff Coordination:
Project Outline LIEMPTY For FI Staff -3s/R. Bryant
FI Memorandum For CI Staff -s/R. Brown
For cca -5/F. Youngblood
1 t
=e
qrthEl.


14-00000
ag
ral

itinerant eet ce me Ae Rg

ce +
Sewell \

: . \
25 gan 1964

‘
t

MEMORANDUM FOR: DDP;COPS

THROUGH: pope |
SUBJECT : Project LIEMPTY |

FI Steff recommcds renewal, with the assurance of the
desk that the transfer of the unilateral surveillance tean to
LITEMPO will not @fTect Its independent status. This review
presents a clearer picture of the usefulness of the several
segments than the previous one,

x

~ Chie
We GEORGS
Chief
Foreign Intelligence

Attachment
Project

14-0000

—— SECRET me

HENORARDUG FOR

SUBJECT 3

Wil ~ hexico

1. The attached oreveet, originating in WH Division, is
presented ror renewal far othe perioce 1 December 1959 through:
31 November 1060.- The erelect provides for physical and photo-
craphic surveillance operations in cusport and exploitation of
other Mexice City operations, particularly thove targetted at
Soviet personnel and tnstsiletions.

2. Autnority is regues
Do/P- Wil Division operating t
12>GO and gcG,423 vor fis
or funds. hese cums
contract agents (three 22
secments ar the orcJect)}
for velicle maintenance
Tor operational equipine
safenouses; ye, 000 for

to oblfmate $34,910 from the
ts ghey Ne for Ciseal yeor
gubfeet t6 the avatlabiiity
2219 comuensation for five
sery2 ac principal arents for
1 sixteen support aventa; 3,590
ommercial carrier travel; . 37,509
,o29 for waintenanee of threc
enal safeuouse, poct office box,
haaze commodities; $2,000 ‘key”

pees

and vehicle vental; bee OS exe 4
money, broken contracts, etc.3 ans pe, Cod for the purchase of
information, docunenen, gayvent af brthes, ete.

3. he attacned ranensl requect, prepured in the vivisioa

@nd suayorted by a foot review orcoared Lu tue Pleld, reviews
“he activities of feet during the pant year and oresent
a detatied break: funds reguented ne proicet
onerares in in) sontract wpens Oliver a.
WUANTOTING te e ages is used to follow-up and
exololt overattona? r io on eet personnel and inchalla-
tions, to eace vor Listior f interest, aequire pro-
perty, ete.; (b) a ig sur Llance tecom, under orin-

may tilgine: three nouses or apart-

cioal arént Haymond

SO ee oT

ments and one ohoto e) & physteal surveillance team
under princinal LACKLIT, consisting of three
ee Tae attached renewal

A

trained members
request ravieus

u

aeconolisnmaents of tae pro-
ts and in relation to pro-

$2 GAG Dot Caen
4 2
tod
3

gees in terms of e
goot obfectives. c eontripution to the collection
or operaticnal r rtainine to Soviet personnel end

stallations s, che Gtaticri ac unique. He also

SECRET

14-0000

"oe  SEGRET -

trained GLAGKETYT Ln radio centrolled mobile survetllance.
SCANTLING also has rendereé luable supvert te the LIM?
operation navine ined on to the tarses uncer a vaturi-
eated cover. He uss aise $-and prenerce reports on the
“pies baoY target in oreserss ror ure eserations and ver-
formacd investicationc 9 a oot wsatien tarcets of
conertunity. lie invest . Y : teads from cther audio-
surveillance operations Masks mg the Station te maintain
current data on various sx % contacts and resulting in a

unsuccessful, is believed
my this kine. ue has rur-
precedures rar the nobile
cles In sugpert of other
sevment, ustne three base
yuo photoes

recruitment attennt whicn
to indtente future poten
ther been ucecd to develop
teams and to rent verious
Station omerations. The

houses fer pheotorrashy, wowords of

craghs during, tae year. hag reeeny wegen taking

motion utetures of Soviet neloin the eoirse of r

satlon woich have been Cert FI/p> ver ya: a fa
o

tion by lin reading anglyet seone nt

moblte radio surveillance ven
vetllanee truck has teen uses
eoverace of various Station tary “wiieh do me warrant the
establighnont of permanent pactesraphic. bases. Wahoos has
also served to rent pose office 3oxes, hote 1 reons, oete., in

sunvert of other station Operations. Dburdns the past oregect

year CLACKAPL, woo returned to Fexico in early 32 1989

after Headquarters tredotnrc, sgent the Collows wo months
beins trained by SCARTLING tn tebile survetl} teenniques

He then undertook training of a2 four menber ¢ itch was
dudged ready for operations’ nse toward the en D the profect
year. Two nadtttonal eontract agente, Wilma ADALIGI and
Loufse J. MACKINO, nerformed translation and su; functions.

tte
a]
{
9
nm
2
st
ry
Q
po]
[or
3
yy

1, Appropriate staff cenpenents concur
renewal.

(a) Ur Stert ue of the orofect
«

muea of the

in difricult to y
materlal produced ation r exnleita-
tion. ilewever, Gre Stac?Y revarks that the value of the
profeet should be inevreased when the CLAChIY surveil-
lance team enters Into sevive ogeration., oF staff sug-
gests thet the Station be queried as to the oretext or
circunstan@es under which 3sanTsING trequensly visits
Inez Perada’ de Moreno, the cecuaant of the sronerty
adfacent to the Saviet inctallation. 4

1
1

orT
RE!

Of
mr
foo


14-0000

SECRET -

(vb) F1/C7, notes that while the project review pre-

sents a oat oieture of the alma and obfectives of the :

orlous it does not orovide, exccnat in the : {
cane of fc, detailed indication of the value or ;
usefulness of “tne ovner ucgments, particularly the photo-
graphic activity. PI/ors requests that the Station pro-
vide such an aopraisal during the first quarter of 1960. : \
FI/OPS recoatends stronzly that the note coverage be \
reviewed fren the standpoint of value and usefulness with H
Q view to determining whether the LILYRIC activity could
not be safely eliwrinated and tne additional photographie
coveraove conducted on a more selective bdacis, without
matersall; 2 Sectine overall usefulness. ¥FI/Ors notes i
that, in tne absence of further orovr of usefulness, the \
color ohotegragny and moving pictures epgcar to be an !
unnecessary luxury. PI/OrG commends the careful handling |

{ the Clacehert secmont and requests that the next project
action include exa

mples of the team's progress.

of Project LIGMPTY as orcscnted
coments in sarecreph 4 above.

y doch
citer
*oreirn Intellicence

s
aporoved: __Aarhordtldanr—_, ges

Date

Attachmont: Lterf Coordination:
Project outline LILEVI¢ Fer G/SI/Cls -s/h. Eryant
: gor CIT Stare? -s/k. brown
vor C/ecn ~s/S. Younphlood

SECRET


14-0000

9 December 1959

MENORANDUM FOR: FI ~ Projects Branch

SUBJECT : Purchase of One Automobile and Increase of
LIEMPTY TVA by One

1, According to the Project Renewal Request for LIEMPTY
from the Mexico City Station, they plan to increase the LIEMPTY
surveillance team during the coming year by two agents, To main-
tain the efficiency of an enlarged team, they will require one
additional automobile,

_ 2, It is requested that the IVA for LIEMPIY be increased
by one automobile and that the Station be authorized to purchase
locally this automobile for use under the LIEMPTY Project.

J.G, K
c/WHD ed

4
oman

Meee ~. eee a
Ney dee Sd Oe


14-00000

. SECRET
(Uren Fitted Inj

CIA INTERNAL USE ONLY

SUPPORT ANNEX - TABLE OF VEHICULAR ALLOWANCE ,

1. PROJECT

3 TYPE OF ACTION (check one) femme
OC
OC

REQUESTED ACTION

Ss.
TOTAL TOTAL TOTAL
Cc
stan 2 or 4 door used passenger
American or foreign

OTHER (List below)’

fe Panel truck Poof, |

7,

APPROVAL REQUESTED BY

fom |

fe ev ieweD py
orvesion [oare

H/SUP BOP

= 11 Dee 1959

SIGNATURE LOGISTICS OFFICER DIVASION OATE
7; y) WH/LOG | 11 Dec, 194

APPROVED

StGNATUR CHPEF, ADMIN.

t nov gg LEG resr SECRET
, : CIA INTERNAL USE ONLY

e+ 36)

= SEORET me

MEXORASTUN- : Chief, rs HEADQUARTINS CASS OFSICER:
SUBJECT 3: Froject LIEIPTY Amendment tame: J. 8. brady
Rooms a varton =a Hen a

exter: 2555. —ssss~S~s~S

Date: 35 June 1959

1. It is reqested that avnroval be granted to amend Raymond H. GERENDS's
contract to crovide him with a termination settlement of one month's salary for
each full year that he works for KUBARK and to raise his salary effective July
1939 from 9,020 to 74,560.00 ver year. fis last salary increase was granted on

1 Sertenber esr. The date, 18 March 1955, has been sugzested by the Station as
the begimning dite for the computation of CRENDS! s temination benefits. The
Station telieves that this benefit will nrovide GSRENDS with the necessary
incentive to make KUBARK a career and at the same time will give the Station an
additional elexert of control.

2. As pointed out in the LIGPTY Project Aporoval, GERYNDE, an indigenous
agent, is one of the Station's most valuable assets, Ee has i. responsible full
time jod as the LIS PTY Principal Agent whe handles the LINITSD, LYLYIC and
LICALLA base houses, the LIENTAAP oneratian, the outside ohotographic processing
and translation service and all the agenta particivating in these activities.
He performs his duties in a conscientious and orofessicnal manner and his
already excellent abilities are showing continued improvement.

3. Money was already allocated in the LIZ-PTY Project aporoval for the
salary increase. \ith the effective data of 13 March 1955, for the termination
clause, GERUIDS will already have accrued 11,520 (his salary is $4,560 per year)
if he should resign today. The LIEMPTY Project, as asproved, has sufficient
funds to cover this cost if it is necessary to obligate this amount during the
present Project year. Therefore, no atidijtional funds are requested.

Attacments:
qolder with cast aporoval

ore with tong name
conta Gage VW [lve

e ", SI
Approved? 7/
oprovet for Transmittal:

hy
Date:

senior salt te Jindtio
For C;FI/OPS -s;R. Bryant
For CI Staff -s/R. Brown

CEORET

~ SECRET. , -

. . 27 March 1359

MEMORANDUM FOR: Chief of Foreign Intelligence

SUBJECT : Project LIcMPTY (amendment)
WH - Mexico city

l. Tha ettached project, originating in the WH Division, provides the
services of a surveillance activity to support Mexico City operations and
ia approved for the period 1 Decamber 1958 through 3C November 1959. It is

* presented for your approval of umendment to include the addition of a con-
tract agent, Louise J. MaCRINO, to furnisn edninistrative support, and also
to formalize a special commitment made to one of the two principal agents,
Oliver G. SCANTLING. A contract prapared in the Field and signed by tha
agent permits the payment of one year's salary to him or his assigned heirs
in event of loss of life or total disability if Incurred in the performance
of duty. This has not previously been included in the project.

2. The LISMPTY project hes authorization for the expenditure of
$95,380, No additional funds are required for the amendment. Sufficient
funds remain in the project to absorb the salary expenses for MaCRINO and
funds to cover the extra year's salary for SCaNTLING will not be requested

until such time ag they are needed,

3, Memoranda prepared in the iH Division suoperting the recuest for
amendment are attached, summarizing the important factors involved. These
detail SCaNTLING's performance and provide a resume of MaCRINO's past activ-

ities in behalf of the Agency.
4. Staff Components have cencurred in amendment to Projact LIEMPTY.

5. I recommend approval of amendzent of Project LILMPTY as presented.

approved
Pinter, Foreign Intellizenca

Attachnent: Staff Coordination:

Project Uutline LIsMPTY For C/FI/CPS -s/¥. Hoffrann
For CI Stsff -s/R. Brown
For DCsCCbsNc -s/F. Youngblood

14-0000

aoe

MENOSANDUM POR: Chief, FI HSADQUARTERS CASE OFFICER:

SUBISCT 2 Amend LIZMPTY Projact to Include a KAME_ J. 5. Brady
Special Benefit for Oliver G. nOOM lin Barton Hall

SCANTLING (pa) and to Include EXT. 0555 or Sloe
Louise J. MACXILO (ps) Pate___5 March 1959

1. It is requested that approval be granted to give Oliver G. sCANTLING a
special banerit of one year's salary to him or his assigned heirs in the event of
loss of lize or total disability if incurred in the performance of duty. This
benefit was included in a contract prepared in the field and signed by Subjact on
15 February 1957, Tha contract was not submitted to Headquarters for approval
until Decenber 1958. The Station and WH Division do not want to delete this
vbanetit fron Subjact's contract at this time and we feel Sudject deserves this

benefits

2. SUAMTLGNG, a civil engineer, 1s a Mexican citizen, who is 0 years old.
Hea was cranted an Operational Approval on 2 December 195i. SCANTLING bercan his
employment with SUSARK as a footman on tha LIPSTICK physical surveillance tean and
gradually becane a driver of a surveillance automobile, then team leader. As team
leader he was resronsible for the operational deployment and administrative direction
of the entire LIPSTICK team, threes automobiles, four photographic and radio dispatching
basehouses and the attendant mobile and stationary radio equipment. He collated the
fragmentary surveillance reports into finishad intelligence reports for study by the
Case Officer. SCANTLING develoned into a fine investizator and has obtained infore
mation where other Station investigative ascets hava failed.

3. Almost all of SCAITLING's time now is spent following up leads obtained

from telephones interceots and photographic surveillances. Fron July through
December 1955 he made approaches to individuals performing services for the Sovict-
Embassy and he made a detailed casing report of the Wast German Embassy. In addition,
ha conducted many routine investigations and surveillances, The Station plans to |
have SCA TLUG attempt to recruit the landlord of the proposed basehouse for a

. LINIGENT (T/D) operation. SCANTLING no longer nandles thu surveillance team and the
Station clans to continue to use him as an independent asset. SCALTLING has in his
possession official credentials of the Federal Security Police (DFS). He has used”
these credentials in making contacts with targets of various sensitive Headquarters!

operations (i.e., LOMAYFOJL). ;

he As a eradvate engineer who has spent at least ten years in house construct tion

in Mexico, ha has been invaluable to the Station in submitting detailed casing report ts

including detailed and professional plans of technical targets. He has been com-endad
by TSS for the support role he has played for then, He has submitted several casing
resorts on the Soviet inbassy and is an unsaraileled source of information to the |
Station for information about the Embassy's construction activities, modifications ;

and reasons for sane.
L

Seoge
ue

- tine to dncluds.an.extra year's. salary.for JCANTLIN

i . G ATE. . =,

mT , Sku,

"hee

2

S. For your information there is attached the Station's review of SCANTLING |
for the period July through December 1958, It is believed you will find tais negert
of interest and further support the justification octlined above for the granting to
SCANTLING of the special doath and disability benefit. This agent assessawnt states

~————WOliver 0. SCANTLING nas “continued to perform his assigned tasks in an outstanding

manner, SCANTLING's poise, common sensa, education, idvology, and native ability
for the pursuit of clandestine activities make him one of the most valuable support
assets available to the Mexico Gity Station. The fact that SCANTLING has a {12

- tine overt occupation as Chief Engineer and Production Manager for a local mam-

facturing company adds to his long-range potentiai as & KUPAKK agent". SCANTLING
has excellent cover as haif-ower of a local firm waich manufactures farm instru-
ments and he represents the high calibre of person waich KULARK requires for tha

institution of their long-term resident agent programs.

382) will not be anon: dec at this
(iu, Q0). “Ii the event it
becomes necessary to fulfill this commitment during the project year, and af the
expenso cannot be absorbed by the present project satherisation, an anendmnt will

be submitted.

7. It is also requested that offectivea 1 Maren Isso the LIEMPTY Project be
amended to include LouiseJd. MACNINO, a Contract Agent, who is a Station suvport
asset. Her OA was reinstatad on 4 August 1958 (C-L1:52). She was fornerly included
under Project LIMSAT.. Howaver, the Station requiremrits for general translation
work increased to the extent that it was necessary to usa MACAINO to translate revorts
other than those originating from LIFSAT. It was therefore decided it would be more
appropriate to include her under LIZMPTY. She does sping of reports and nan-sensitivo
translations, She is paid on an hourly basis of 32.02, an estimated yearly salary of
$3,500. The Station stated that the present Lick Project could acsorb_ ths expanse

of her salary, for. the remsindar of the Project Years _ es
Re Me Dahigren, oft
Ve te eCeESnae 7 o x

6. The LICMPTY Project (now approved for $95

Attachments:
Folder with LIEMPTY Project Approval f , , _
Envelope with true names

HYMA 12095 (1 copy) FAPOK . fate

14-0000

e7ane

| . , Wet
: .
MEMORANDUM FUR: Chief of Operations, D0/P 26 gry cre

SUBIECT 2 Project LIEMPTY (Approval)

WH = Mexico City

i . .
: 1. .The attached project, originating in WH Division, is presented ©
‘for your approval for an initfal period from 1 December 1958 through
30 November 1959. The project provides for the development of operational
information through physical and photographic surveillance operations in
support of other Mexico City operations, particularly those targetted at —~
Soviet personnel and installations. Previously these operations were con-

ducted for the most part under Projects LIPSTICK and LIJERSEY. They are

incorporated in this new project because of the June 1953 compromise of
LIPSTICK and to accomplish a more orderly administration of certain opera-

tional support assets.

2. Authority ie requested to obligate $95,380 from the DD/P-WH
Division operating budget: - 265,580 for the current fiscal year and
$29,900 in fiscal year 1960, subject to the availability of funds. These
estimates include: (a) finds for the compensation of the presently-

" pecruited fifteen action and support agente » 51x new agents, and two

principal agents: Raymond H, GERSNDE (p) (LIZMPTY/1, formerly LIPSTICK/20)
and Oliver G, SCANTLING (p) (LIEMPTY/2, formerly LIPSTICK/19); (b) funds

for the compensation, travel, allowances and Headquarters! training of two
contract agents, Simon D. CLACKETT (p) and Wilma J, FIORDALISI (p), hia wife,
who are hereby transfarred: from Project LIMESA; (c) funds for operational
expenses and 6quipment, including the purchase of four new or used vehicles
as replacements for previously authorised vehicles and their maintenance,
and a SP vehicle for SCANTLING; (d) the rent, utilities and maintenance of
safehousea; and, (e) other appropriate operational expenses.

!

3. Tha attached Field Project Outline, a covering memorandum from the
Division, and an addendum to the Project Cutline, review the personnel assets
and facilities transferred from the LIPSTICK and LIJERSEY operations following
the partial compromiss of LIPSTICK in June 1958 and describe the concept of
the physical and photographic surveillance operations to ba conducted under
thia project directed primarily at tha Soviet Kmbassy in Mexico City. These
surveillances provide photographs and other operational data of peraons entering
and leaving the building or present in the garden area, and through additional ~
foot and mobile surveillances, investigative information concerning their
contacts and destinations. Agent personnel, particularly the principal egenta,
are used algo to conduct separate investigations, make recruit-approaches to

ae ee

enc r
woud


14-0000

ee ony
se .

individuals of operational interest, and to rent rooms, and apartments and
perform other support activities, The fixed surveillance bases, LIMITED,
LILYRIC and EICALLA, have’ been in operation for almost three years without —
having been in any compromising situations insofar se the Station knows.
Tha. LIPSTICK unit, a panel trick equipped vith. cameras, etc., is considered
& partioularly valuable asset by the Field, As a replacement for a staff
agent, Wilfred 0. CLOWSR (p}, who directed and trained the LIPSTICK surveil-
lance team, the husband and wife team of CLACKATT and FIORDALISI are proposed
“as qualified individuals to recruit, train, and direct ‘the new LIKMPTY gur-
“veillance team and maintain its records. Appropriate notional cover was
arranged for them while in their previous project, LINSSA, as they reaide in
Mexico. under true nazes. One of the principal agents, GERENDE, will have no
contact with the new surveillance team, but will be used to conduct special
investigations, counter-survoillances, and for other aupport sotivities,

4. The CI Staff aoumonta that LIZMPTY provides soveral typea of physical
surveillance, sll of which provide information of CI interest, and es a aupport
“) mechanism, a production review 19 not appropriate cr necessary. The CI Staff
‘ etates further, that vith the compromise of the LIPSTICK surveillance team
the Mexico City Station lost its only reliable ani efficient surveillance tean,
LISMPTY representing the Station's effort to replace that asset. Pecause of
the great number of CI targets in Mexico City, the CI Staff believes it is
essential that the Station be given the opportunity, through this project, to
build another surveillance team capable of operating against sensitive targets.
additionally, the CI Staff believes the case officer should work at devising
ostensible sources of incomes for the agents which will stand the scrutiny of

friends, relatives and less friendly forces.

5. FI/OPS suggests that the Division consider a gradual reduction of the
considerable financial and personnel commitments in this project in view of
the favorubly developing LIENVCY liaison relationship. FI/CPS believes that
a smaller, more mansgeable support group, with grester Station emphasia on
selectivity cof tasks and targets could well result in more effective CI and

FI productivity.

ar oyter

14-0000

can

Guyal a

6. I recommend approval of the project and the transfer of the
contract agents as outlined above. The Division is requested to take
cognizance of the suggestiona-of the CI Steff and FI/OPS in the para-
graphs above relative to the security and the overall direction of the
gurveillance activities to make them more efficient.

Began OG alle i

FI/OPS Division
tr W. LLOYD GEORGE
Chief
Foreign Intelligence

° -
Approved: Anihodbltun. tein 7959
COP-DD/P Date

Attachmentar '

Project Outline LIAPTY For C/CI Staff -~a/R. Brown

Addendum to Project Outline For C/fI/0PS = =2/V. Hoffwann
7 c/ccD/EC ~e/F, Youngblood

pases

Lr rere

14-0000

MEMORANDUM FOR: . FI/OPS - Projects Branch HEADWARTERS CaS& OFFICER:

7 CRYPTONYM: __ LIEMPTY WAMEs__J. Be BRADY
: ROOM: __ 2120 Barton Halh ‘
: DIVISION: Western Hemisbhere EXT.1__ 2589 .
; DATE:__15 December 1958
STATION: Mexico City

t
1

1. It is requested that the LIEMPTY Project approval request be
amended to include Simon D. CLAGKET? (ps) and Wilma J. FIORDALISI (ps)
under the LIEMPTY Project effective i January 1958, No additional funds
are required, |

2. It is also requested that the LIMESA Project be amended to delete

from this Project these two Contract Agents effective 1 January 1958,

Rabur ws
! R. N. Dahigren, C/WwH/Tl
Charles W, Anderson, sale

Attachments: .
Memorandum (in quad) ,
Envelope with true names .

SECRET


14-0000

SECRET

Request. for Amendrent to LIEMMTY Project

1, It is requested that the LIEMPTY Project anproval request be
amended to include Simbn D. CLACKETT (ps) and wilma J. FIOKCALISI (ps),
U. S. elitizens and contract agents, under this Project in place of the
Staff Agent written into the field project outline. At the same time it is
requested that the LIM'SA Froject be amended to delete these contract
agents from the latter project.

2. CLACKETT and FLORUsLISI are. now approved under the LIMESA Project,.
They were recruited in the United States to occupy a sensitive LIMESA base= ~.
house. because of the sensitivity of the operation and the equinment to be
installed in the basehouse Headquarters decided U. S. citizens should be
used. The Station said appropriate documentation and backstoopirg could
be secured for those agents so they could be viven false identities under

"which they could live while they occupied the basehouse,

3. FEXI-2777 (IN 26519), of 14 November 1958, notified Headquarters
that security factors and difficulty in obtaining adequste documentation
and backetcpping precluded tre use of U. S. citizens under LIMKSA and re~
quested permiesion to use indigenous agents for this operation. After dis-
cussions between John BkuDs, Chief of the Mexican desk, with the LIMESA/
LIEMPTY Caee Officer in Mexico City, and discussions between representa~
tives of F1/D, OC, [SS, and WH at Headquarters, Headquarters concurred in
the field's operational decision to use indigenous agents in the LINESA
Project. CLACSETT and FIORDALISI received only a very superficial briefing
regarding the LIMESA Project. It is not believed Subject's limited know-
ledge of this sensitive operation will pose a security hazard,

4, Construction on the LIMUST houses is being kept about two weeks
from completion until indigenous agents can be cleared and recruited. The
delay in completion is normal beresuse all construction money in Mexico has
become extremely tignt because of the recent presidential inauguration.

5. The Station believes CLAChETT will be an excellent replacement for
wilfred O. CLO.EH (ps), former Staff Agent under Project LIPSTICK, who
directed and-trained thet surveillance team, CiaChErT has shown a remarkable
aptitude for clandestine operational activity and surveijlance and investi-
gative work in particular. He also is interested and enthusiastic in under=
taking this assignment for KUB.RK, The Station needs a good bilingual agent
to recruit, train, direct, and develop a strong dependable physical. surveil-
lance team under LIEMPTY.

6. Clearances and Contacts: CLACKETT was granted a PCSA on 23 July 1958.
A Poa/oA for use under LIMBSA was requested on 19 Auyust 1958, FIORDALISI
was grarted an OA for use under LIMESA on 14 November 1958, Requests have
been submitted to amend their clearances for use under LIEMPTY, CL.ACKETT
and FIOHDALISI have signed contracts effective 1 September 1958. The
sensitivity of the LINtSs Project required them to leave their young son in

SECRET


14-00000

Seep Se:

“2s

the United Stutes.’ Bacause of this a special benefit of periodic trips to
their home in Arizona was included in their contracts. Under LINESA their
quarters were to be provided, An asendment has been requested to their = —
contracts deleting the special benefit and adding educational and quarters

allowances, : ;
7. Notivation and Control: ClaCKETT and FIORDALISI are extremely.

patriotic and highly motivated as evidenced in their willingness to under-
take the LIMESA Project and be separated from their son. They have indi-

‘gated they are more than willing to do whatever is requested of them, no
‘matter. what. personal sacrifices and hardships are required. Their com-
plete livlihood is dependent on their KUS.RK income.

8 Tagkg: CLACKETT will recruit, train, and direct the LIENPTY
surveillance team. ‘The Station hopes to develop this team into a major
Station support asset. We will receive instructions and direction from the
Station Case Officer, FICROALISI will be used to do all the clerical and
administrative work for the LiENFTY surveillance team,

9. Communication and Cont:et: CLACKETT will contact the Station Case

Officer in a clandestine manner, All necessary security precautions will be /
taken. CLACKEIT will also contact his surveillance agents umer a cover

which will be determined later by the Station and CLaCKETT. In view of his

Mexican background, CLACKETT can pass as a Mexican. Details of communication
and contact arrangements with KoSA&K will be arranged by the Station. Under
LIEMPTY CLACKETT will be contacted by the same Case Officer he is now con-
tacted by under LIMESA. CLACKETT and FIORDALISI will be in direct contact
with relatives and friends in the United States. The cover company has,
until now, been serving as a letter drop and contact point for emergency

messages. :

10. Cover: CLACKETT and FISRDsLISI entered Mexico on United States
documentation and it is planned they will continue to live in Mexico under,
true name. CLAChETE has a notional cover as a public relations consultant
which was established by CCD/NC to use with friends and relatives in the U. S.
The same cover story can be adooted to cover their proposed use under Li" PTY
vis-a-vis their United States friends. The Ststion is working on local cover
for CLAChETT to use in Mexico,

11. Anticivated Costs: It is anticipated that the following expenses
will be incurred by CLACA=7T and FICADALISIs

Compensation:
CLACKSTT (37750/yr) 7100
FIORDALISI . ($40%0/yr) 3700
10,800
Allowances!
'
Educational allowance 320

_Suarters ($2500/yr) SegRST 2500 . 2,820


i
i -3-
f Travels — : en)
a
i ce, PCS ; 300:
Te TDY to Headquarters for i '
; training (including :
, - . . 30 day per diem at : . : . .
$12 per day). a 248.

o> eentaeermage.

, Total . 14,368
ee |

A total of $14,470 was included under the LIEYPTY Project approval
request submitted on 24 November 1958 for a Staff Agent; therefore, no
additional funds sre required, . \

: Secrr”

14-0000

t

24 November 1958

NEMORANDUM FOR: P1/OPS-Projects Branch .
SUBJECT __ %- Justification for Automobiles under Project LIEMPTY

re oe Ie- ts: ‘requested that ‘the Mexico city Station be authori sed-to
purchase. ‘three used -éédana for use by the LIEMPTY surveillance team, The.-
Station plans to expand the LIS(PTY surveillance team into a larger, vellm ~
trained. physi¢al surveillance -asset, They. will need three automobiles.
Private automobiles or commercial transportation will not be satisfactory —
since the cars trast be outfitted with two-way radios.

2. Authority is also requested to purchase a panel truck to be used
in the LIENTRAP operation under this Project which mounts mobile photo-
graphic surveillances,

3. It is also requested that a ‘quasi-personal ear be. authorised for
Oliver G, Scantling (ps). Scantling is an indigenous agent under oral
contract, A car is s prerequisite for his work for KUBARK which includes
casings, surveillances, and investigations, Because of the sensitive
nature of his work, and the heavy use made of the car, tha Station has”
decided that Scantling should be furnished a QP car.

4. LIEMPTY agents were formerly carried under the LIJERSEY and

‘ RIPSTICK Projects, The vehicles used by the LIEMPTY agents under these

other Projects will be disposed of and new ones will be purchased after
the above TVA has been approved. The vehicles which will be replaced
are MV 2148, MV 2147, MV 2138, and MV 2031. One of the surveillance
ears will be new and will not replace an old car, It was decided that
these vehicles should be replaced rather than transferred to the LIEMPTY
Project for security reasons and because of the age of the automobiles,
The automobiles are 1951 and 1952 models and have been used for sensitive
surveillance work for over two years, The panel truck which was used in
the LIENTRAP Operation under the LIPSTICK Project has been operating for
two years in all parts of the city and has become a security threat. The
fact that the LIPSTICK surveillance teas knows that the truck exists,
even to the point that one of the team mendors is the listed owner of the

truck, also dictates replacement of this vehicle.

cceaeT

14-0000

em SECRET
(When Fitted ta)

CHA INTERNAL USE ONLY

1. #aostct

Tre oF ACTION check one) —

———== |

| th ACTION

seomm 2 or A door, 5 passeng r Ancrican
of foreign

a — oo

fe femme annem
mete panels rerio oF foreign mee 3

REVIEWED BY
,PStowatume toorartcs OFFICER Ofvesion

A frame it

APPROVED

ADMIN.

SLGMATURE CHIEF,

ate

\

BY OFRECTION GF DOP

. aaa 116 vee enevrous sorrsoms, SECRET , tesa

j CiA INTERNAL USE ONLY


14-00000

a ~ ; - .
re ae a
’ et .
be . !
“ye : . . . 1
mL an CONFIDENTIAL
7 oa : ‘ \
. NOTICE .
> Ba
2 '
‘ . ht
3 :
3 og
a os : t .
a 1
! :
| |
‘ THIS FILE HAS BEEN PROCESSED AND RETIRED, ‘DO NOT .
; |
ADD ANY DOCUMENTS TO THIS FOLDER, FORWARD CS
DOCUMENTS THAT SHOULD BE INCLUDED IN THIS FOLDER
TO RID/RPU GE-58,
i
NOTICE os

CONFIDENTIAL

aM 2593

(7-19)


14-0000

te SECRET ow

an cwnens rade we

SUBJECT AND PROJECT FILE REQUEST
AND FIEW NOTIFICATION OF ACTION

10 __ : (Station/Bese) FROM: (Diviston)

: : Mexico Cit -WH

° . INFORMATION FOR REQUESTERS
(TEM 10-ENTLR OLD THLE WHEN AMENDING A TITLE, CITE
ANY FILES, SUCH AS 201 OR PROJECT FILES THAT ARE RE-
CATED TO THE FRE COVENHED BY THIS REQUEST. ITLAD 10 MAY
ALSO BE USED mo GIVE REASONS FOR THE ACTION BLING RE-
ue JQUESTED. TO ;WINTUY THE TYPE OF MAICRIAL TO NE PLACED
IN A FILE OR TO MARE OTHER EXPLANATORY HEMARKS.

COMPLETE ITEMS 1 FHROUGH 12. .
WTEM S-ALL FILE TITLES MUST OF STERILE SINCE THEY WILL
APPEAR ON THE FIELD COPIES AND ON MACHINE LISTS.
ITEM 6-ALL REMARKS MUST BE STIFLE.

(TEM 7 AND B8-USE FIRST THHEE LETTERS OF OSrATCH SYMe
BOLS FOR FIELD STATIONS AND LIST HEADQUARTERS ELE-
MENTS ACCORDING TO ESTABLISHED NUMERIC COOLS,

INFORMATION CONCERNING FUE
COOC IFILL? NUMUER

a
1

1TEM 12-A RECORDS OFFICER MUST SIGN ALL ene ACTION RE-
QUESTS. CONSULT YOUR RMO ON ANY PHOOLEMS THAT ARISE.

TYPE OF FILE

in
i)
SUBJECT PROJECT .
CJ CY 050 1 006 | 074/21

\ D. FILE FITCE (SPECIFIC SUBJECT? (PROJECTS LIMITED TO tS “SPACES! a

KDFACTOR
ACTION RFQUIRED ‘
4 ANALYSIS ACTION %. OSPOSITION
* [| open rue X [crore rics anorcate omrosinions RETAIN DESTRUCTION RECOMMENDED
oot ianniaianiaala mains THRU IDATEO
| [ AMENO Fle TITLE REOPEN ¥

& REMARKS (FOR FIELO DISTRIBUTION?

7. INTERESTED STATIONS (PROJECTS ONLY?

FILES ACTION

CHARGE PERMANENTLY TOP

HOLO IN PREPARE FOLOLA AND ‘OFFICER @ DESK?
Cs FILES RESTRICTED UNRESTRICTEO SEND 10 REQUESTER .

tQ COMMENTS UNCLUDE SPECIAL HEADQUARTERS ROUTING INSTRUC TIONS?

W ENDORSEMENT 12 COORDINATION Bt RIN APPROVAL

SIGNATURE OF BRANCH/OESK 8. O. SIGNATURE Or GPANCIVOESK a. Oo PaeQuest APPROVED ov NE,
(WHEN APPLICABLE) I

*? . ae, oe O° Al

oye td “ af 1 PRan

Rete vedere HE3O eck are4

ree CATE CODE tFILE) NUMAER

aly 1973 =
23 19 50 Ol

OBSOLETE PREVIGU
vors, 812 EDINIONS SECRET

12-63 MES 12-63 38 1—C8 COPY

14-0000

PROCESSING ACTION

CUSSHCATION

“AISPATCH [ce cas

Chief of Station, Mexico City

an .

____] BARRED FOR POEMS

oa had BeOUTING RrQUIRED.

jomr QUAUHTO DIA
yan FUDGE INDILING

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ete

Chief, Western Hemisphere Division

susie
P"OTermination of KDFACTOR Project
ACTION REQUIRED - REFERENCES

REFBRENCE: HMMA~42,197 ;

This is to advise you that the formal termination of the ,
_KDFACTOR Project was approved by the Associate WOMACE on 25 May 1973.

James B. KARDENETZ

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GOFFCER § SIGNATURE

Raymond Swider

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14-0000

14 May 1973

MEMORANDUM FOR: Acting Chief, WH Division

- SUBJECT: KOFACTOR Project Amendment and Termination

1, The KDFACTOR Project, which provided photographie

survetllance from two vantage potnts of the Soviet compound .

{n Mexico City, was determined to be compromfsed due to the —

VWBLANKET case. The five agents were terminated tn July

' 1972, _ but the base houses could not be terminated untfl

January 1973 because ft was necessary to sell one and the
termination of the second was tied to the termination of
KDABBEY who owned the second base heuse. It was necessary
to pay rent for several extra months until] these other
términations could be effected.

2. The base houses and agents have now all been ter-
minated and the Station already has rented a replacement.
safehouse with new agents to provide the same coverage
(KDALCOVE).

3. Approval of the amendment and termination of

Project KDFACTOR fs recommended,

Herbert WW. Natzke
Acting Deputy Chief
Western Hemisphere Division


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PROCESSING NTO

CASS rCA TION

DISPATCH ©

__ | ARRED Foe EDULIS

NO INDLLING RGUIEEO

Omy Qualia GbSd
CAN FUDGT INDE RES

ern Hemisphere Division

smary_of KDFACTOR Project Security Roview

ACTION REQUIRLG - REFERENCES

Forwarded under split transmission for your information

is a copy of the KDFACTOR. security review. Also included are
———

two memoranda containing C/WOLENS and C/WOMUSE comments on the

security review.

Roger W. BICEGO

ATTACHMENTS:
1. Left Side - herewith
2. Right Side - U/S/C

DISTRIBUTION:
Orig. 4 1 - COS, Mexico City

DATE

28 JUN 1972

CROSS REFERENCE 10 DISPATCH SUSIBCL AND MUMABER
LUD AY: RNG
es ere ‘

a ORIGINATING

OFFKLE = olka pay TST

WH/1 Jolin Davis cf Moose |
1-WH/1 Chrono ee ae
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St

9 May 1972

MIEAORANDUM FOR: Assistant Deputy Director for Plans
TROUGH : MPS/BG/FI

SUBJECT : Project KDFACTOR - Security Review

1. The CI Staff is satisfied with the fine
Security Review of the XDFACTOR Project activity
and personnel, :

2. Mowaver, the Staff urges the Station to
remain constantly alert to any security repercussions
pertaining to all the terminated assets particularly
in vaew of their past knowlecge of the project
activity and the fact that some of thea had family
and relatives who also were aware of the project
activity. Focus should continue regarding any
security problems pertaining to KDFACTOR-7.

3. In addition, the Station should continuc
to monitor any Soviet investigation or probing of
owners and tenants involved in the properties used
under this project. :

Frank W. Hughes
C/CI/OPS/WH

Distribution: .
Orig. & 3 - MPS/BG/FI .
1 - Wii/1/Mexico ” ‘
2 - CL1/OPS/WH

SECRET

ee A eee een te renee

14-09000

“tee

MEMORANDUM FOR: Assistant Deputy Director for Plans
SUBJECT: Security Review of Project KDFACTOR

, 1. At the time you approved the renewal of Project
.-. . KDFACTOR in December 1971 you asked that the Station
conduct an updated security review of this operation,
which provides photographic surveillance of the Soviet
_ Embassy in Mexico City. You asked that particular atten-
tion be paid to terminated agents and their families.
The Station has made a security review and a detailed
report on the findings, from Chief, WH Division, is

attached.

2. The report discusses the history of the opera-
tion, describes security problems of the past and steps
taken to remedy them, and discusses the security and
operational situation of the agents presently covered
by the project. The report notes that the two opera-
tional sites and their associated agents are compart-— —
mented from each other and that processing the film is
now being done inside the Station. One section of the
report discusses in detail the assets who were formerly
involved in these operations but have been terminated.
The final section of the report describes current secu-
rity: practices and notes that an alternate photographic
surveillance site has been procured and is available
for use should the present one be compromised.

3. The report demonstrates that the security of
the operation is being kept up to high standards and
that there are no potential security threats from
former agents that the Station is not aware of. The
FI Staff believes that the Station's security review
and the attached report satisfy the requirements of

j your request.
Qi 020, ._

L. A, Campbell
Chief
Foreign Intelligence

Attachment

Peeled

SECRET

9 May 1972

MEMORANDUM FOR: Assistant Deputy Director for Plans
THROUGH : MPS/BG/PI

SUBJECT : Project KDFACTOR - Security Review

2. The CI Staff is satisfied with the fine
Security Review of the KDFACTOR Project activity
and personnel.

2. However, the Staff urges the Station to
remain constantly alert to any security repercussions
pertaining to all the terminated assets particularly
in view of their past knowledge of the project
activity and the fact that some of them had family

vand relatives who also were aware of the project

activity. Focus should continue regarding any
security problems pertaining to KDFACTOR-7.

3. In addition, the Station should continue
to monitor any Soviet investigation or probing of
owners and tenants involved in the properties used
under this project.

Fitee Fe! hig hia
Frank W. Hughes
C/CI/OPS /WH


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et SECRET aa adiiciaerenaaadt
| - 1? APR i972

. MEMORANDUM FOR: Assistant Depvty Director for Plans
SUBJECT 3 FI Project KDFACTOR, Security Review

“REFERENCE : ADDP Memo (DD/P 1-5899) to C/WHD dated
14 December 1971

I. In response to reference the following is a summary of the
KDFACTOR security review:

The Station summary of the KDFACTOR Project security is
as follows:

‘There were no known problems of security relating to

the Project. In response to the Headquarters request, we have

reviewed all phases of the operation and believe that Project

security is sound. The Project assets have all been with us for

many years and have established themselves as respectable long-

time residents of the area, All five assets, four in one family

and one in another, are extremely security conscious and have

all been SGSWIRLED,’ The assets derive a substantial portion
of their livelihood from their Agency employment and would thus
lose a great deal if security factors ever necessitated a termina- .
tion of their work for us,, As an additional safeguard, the

KDLITERAL and KDABSINTHE operations are compartmented

from each other, 2nd there has never been any indication that

either segment cf KDFACTOR knows of the other's existence",

The Headquarters desk has also reviewed the security of the .
KDFACTOR Project and agrees with the Station that the security |
is sound, In fact, as presently constituted, the KDFACTOR :
Project is well compartmented, and each of the two KDFACTOR Co
photo basehouses (KDLITERAL and KDABSINTHE) is run by long- DG
term assets whe draw a minimum of suspicion in their operational id
activities. Terminated assets could possibly expese the existence

fat
Cycloged rem gempyg?: .
238
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14-00000

a SECRET. gw

of this project, but that seems unlikely from the Headquarters

. review of terminated agents witting of present KDFACTOR

. operational activities. A Soviet investigation of property owner-
ship around the Soviet Embassy and their awareness that the
Soviet Embassy was under photographic surveillance in the past
could result in a Soviet investigation of the activities and contacts
of KDABBEY-1, the owner of an apartment building and four
houses close to the Soviet Embassy, It is doubtful that KDABBEY-1's
activities, which do not inter-relate with the activities of the
KDFACTOR agents, would in any way expose the KDFACTOR
Project operational activities,

2, A brief history of the KDFACTOR Project:

The KDFACTOR Project had its origins in the LUERSEY

and LIPSTICK Projects, both active in the mid-1950's, In 1958, after
the arrest of two LIPSTICK surveillance team members, it was decided
to break off the more sensitive, uncompromised LIPSTICK assets manning
and supporting two basehouses for photo surveillance of the Soviet Embassy,
These asséts were consolidated with one photo basehouse against the Soviet

. Embassy and one ‘surveillance team from the LIIERSEY Project into a new
project-(LIEMPTY), which was approved on 16 January 1959. The LIEMPTY
Project, renamed the KDFACTOR Project in 1971, consisted of three photo
‘basehouses, two viewing-the front of the Soviet Embassy (LIMITED and
LILYRIC) and one viewing the rear garden of the Soviet Embassy (LICALLA),
plus a mobile surveillance team (LIENTRAP) tied closely with the LIMITED
basehouse, which was the radio control point for dispatch of the LIENTRAP.

- - In 1959 the LIENTRAP surveillance vehicle and two team

members were arrested at the scene of a Cuban demonstration in Mexico

City, A Station review of the security implications of this incident stated

that it did not materially affect the security of the project nor expose any

of the LIEMPTY basehouse operations, (Note: As the basehouse operations ’

were compartmented, the only exposure possible from this incident would

have been of the LIMITED basehouse, which is no longer in existence, }

The LIEMPTY Project operated substantially as above until “

the Warren Commission report was published in late 1964, In this publica-
tion was a picture of a person entering the Soviet Embassy taken from the

. LIMITED basehouse. The LIMITED photo basehouse was closed in Sept-
ember 1964, and all photographic surveillance was suspended as a security
precaution. In January 1965 the LIMITED basehouse was relocated, and

SECRET


14-0000

pt SECRET

\ -3-

later that year the building it had previously been in was razed by the v

owner, KDABBEY-l. From 1964 on it must be assumed that the Soviet
_. Embassy in Mexico City beUleves it is under regular photographie sur-
. velllance, \ .

: Further project changes took place in 1966 when the LILYRIC
basehouse was relocated to another apartment with approximately the’
same view, In May 1968 the LIMITED basehouse was terminated and
LIEMPTY-6, the basehouse keeper, retired. This affected the LIENTRAP

_- ‘eoverage of Soviet véhicular movement monitored and directed from the
- LIMITED basehouse, With the.clesing of LIMITED and the Station decision

to replace Raymond H. GERENDE, Mexican national contract agent who
handled the LIEMPTY Project since its inception, the LIENTRAP mobile
surveillance team was underemployed, and the decision was made to move
it to the LIEMBRACE Project. This was done in early 1970, soon after
GERENDE had been relieved of operational responsibilities in December

1969.

The photo processing of the KDOFACTOR (formerly LIEMPTY)
film take is now being done by the Station, In the past, it was done by
the Station, by GERENDE, and by KDFACTOR-I1, who was terminated
amicably in early 1971. The building housing the KDLITERAL (formerly
LICALLA) photo basehouse was purchased in 1957 by KDABBEY-1! for
the Station, KDLITERAL is in a row of four houses all owned ostensibly
by KDABBEY-1! but actually by the Agency, This row also houses a base-
house for FID's KDVAULT Project. The apartment building housing the
KDABSINTHE (formerly LILYRIC) photo basehouse is owned outright by
KDABBEY-1, who has been most: cooperative in assisting the Station in

‘maintaining and occasionally moving (1965 and 1966) photo basehouses,

Thd LIMITED photo basehouse was dlso located on KDABBEY-1's property
when it was active. ,

The individual basehouse operations are and have always been
compartmented one from the other, The only points of breakdown in the
compartmentation have been: (a) the LIMITED basehouse was linked to
the LIENTRAP mobile surveillance; (0) KDFACTOR-1 was processing
films from all the basehouses and could, therefore, be aware of their
exact locations; (c) GERENDE was aware of all aspects of the KDFACTOR
operation, and has since been terminated; (d) Oliver G, SCANTLING,
Station contract agent retired in 1971, was aware of the KDFACTOR Project

SECRET


14.90000

«= OSEORET wy

-4-
through his past work with LIEMPTY-6 and with GERENDE on KDFACTOR
Project activities; and (e) the fact that the two present basehouse properties
are owned by KDABBEY-}, who ts wilting of the locations and general
activity of both KDFACTOR basehouses, .

3. Agents:and Case Otficers presently active in the KDFACTOR | v

; Project:

© *As of:March 1972; Oliver J. MANKUNAS is the case officer
responsible for handling the operations of KDFACTOR; Bruce H. FERNALD

_ is the alternate case officer, The following is a list of active agents in the

KDFACTOR Project:

A. KDFACTOR-2 (201-136454)
DATE OF OA: 27 December 1956
DATE SGSWIRLED: 27 April 1966
' PRESENT POSITION: KDLITERAL Basehouse Operator
_ COVER: Accountant for a local bus line - works cover
job in the evenings.

B. KDFACTOR-5 (201-119961)
DATE OF OA: 9 May 1956
DATE SGSWIRLED: 2 March 1966
PRESENT POSITION: KDABSINTHE Basehouse Operator
COVER: Industrial engineer - works cover job during
the day.

C. KDFACTOR-6 (201-167567)
DATE OF OA: 16 October 1967
DATE SGSWIRLED: March 1966
PRESENT POSITION: Wife of KDFACTOR-5. ;
Co-KDABSINTHE Basehouse Operator

COVER: Housewife

D, KDFACTOR-S8 (201-762111)

DATE OF OA: 29 November 1965

DATE SGSWIRLED: 3 March 1966 :

PRESENT POSITION: Son of KDFACTORs-5 and 6,
Part-time KDABSINTHE Basehouse
Keeper/Operator.

COVER: Part-time shopping (shopper) investigator for

Sears Roebuck de Mexico,

SECRET


14-0000

vs SECRET ew
-§-.

E. KDFACTOR-9 (201-762112) ©
DATE OF OA: 27 July 1966
DATE SGSWIRLED: 3 March 1966
PRESENT POSITION: Son of KDFACTORs-5 and 6,

Part-time KDABSINTHE Basehouse
Keeper/Operator,
COVER: Medical student

" F. KDFACTOR-10 (201-254181)

woe : DATE OF OA: 14 September 1959

DATE SGSWIRLED: Not tested

PRESENT POSITION: Non-salaried. Wife of KDFACTOR-2,
- (KDLITE RAL).

COVER: Housewife

G. KDABBEY
DATE OF OA: (28 April 1954
DATE-SGSWIRLED: Not tested
PRESENT POSITION: Non-salaried, President of
Construcciones Aztlan. Owner
and landlord of KDVAULT and
KDFACTOR basehouses,

Regarding the security of the above active KDFACTOR agents,

- the KDLITERAL basehouse is handled by KDFACTOR-2 with the assistance

of his wife, KDFACTOR-10. They have a long-time maid and a 13-year-

old san who lives with them in the basehouse, Neither the son nor the maid
is believed to be witting. The photographic equipment is kept in a locked
room, and the product is kept in a locked safe. KDFACTOR-2 was recruited
by KDCALVERT-1, who is an active, long-term Station agent in the
KDCALVERT Project and whois not considered a threat to KDFACTOR-2's |
security. KDFACTOR-2's activities are also known to his brother, the
former LIPSTICK-47, who was one of the two LIPSTICK surveillance team
members arrested in 1958 and who gave the police considerable information
regarding LIPSTICK surveillance activities, LIPSTICK-47 was terminated
in late 1958:and is believed to have withheld from the police the information
regarding KDFACTOR-2 and the KDLITERAL basehouse. KDFACTOR-2
and his family have occupied the KDLITERAL basehouse since 1957 and

have been discreet and security conscious in their dealings with neighbors
and relatives,

| SECRET

14-0000

SECRET

-6-
. ett - ' \ . \

. The KDABSINTHE basehouse is manned by KDFACTOR-5, his
wife KDFACTOR-6, and his two sons KDFACTOR-8 and KDFACTOR-9.
The, SGSWIRL of 2 March 1966 went into detail on who is witting of
KDFACTOR-5's work for the Station, The result was that his immediate
family, including a married daughter who no longer lives at the basehouse,
are aware of the photographic operation. KDFACTOR-5 was recruited by’
LIEMPTY-I2, a U., S. citizen with a private company in Mexico City who.
is no longer working with the Station but who is considered patriotic 2 and
no threat to KDFACTOR security,

4, Terminated Agents Possibly Affecting Present Project Security:
A. Raymond H. GERENDE

‘

GERENDE is a Mexican citizen and was a contract agent
until his termination on 26 June 1970. He had been employed by the Station

intermittently since 1955 and was used almost exclusively in support activities,

Since the start of the LIEMPTY Project in 1958 GERENDE had been directly
involved with this project serving as cutout to the basehouses, carrying and
processing films, ..and giving general direction to the project as principal
agent, In 1969, after years of.excellent service with the Station, GERENDE
had serious marital problems which ended in separation from his wife,
KDFACTOR-7. From December 1969 to June 1970 GERENDE was not used
operationally but was ‘maintained on half pay with the hope the divorce pro-

" ceedings would be completed quickly, When it became apparent the divorce

would drag on interminably, the Station reluctantly terminated GERENDE

: and his wife. Bruce H. FERNALD, career agent, met with GERENDE

monthly from July 1970 through May 1971 while paying him his termination
bonus in ten installments, GERENDE is still living in Mexico City, where

- he owns some property and has an income as an English teacher to employees

of two local firms, He visited his wife and children in Holland in December
1970, It appears he may now be financially pressed as his English class

' . schedule has been cut back, The Station as of 10 April 1972 had no informa-

tion that would indicate GERENDE has violated hig secrecy agreement,

There is an indication that GERENDE came to the attention
of the Soviets in 1968; A Mexican walk-in to the FBI office in Mexico City,
who was later interrogated by the Federal Security Police in 1970, said
that in 1968 he had been employed by the Soviet Embassy Second Secretary,
Oleg Masksimovich Nechiporenko (20!1-305870), to investigate persons
working with the Mexican Olympic Committee. The persons investigated

SECRET

SECRET =n,

-7-

A)

included GERENDE, who apparently became a specific target of Soviet
invéstigation. It is unclear. from the report of the Federal Security Police
how far the Soviet-investigation of GERENDE had proceeded, Nechiporenko

° -. Was. PNG'd from Mexico in March 1971, GERENDE's possible exposure to

the Soviets could have:been through his work on the Olympic Committee as
a translator or through his work for the Station, which used him for a wide
rangé, of Support tasks against the Soviet and Cuban targets,

. B KDFACTOR-?7 (wife of GERENDE)

“ge ; KDFACTOR-? is a Dutch citizen and the former wife of
GERENDE, She returned to the Netherlands in July 1970 with her children,
She had served as a support agent assisting GERENDE. She is believed
witting, in general terms, of GERENDE's activities regarding the KDFACTOR
Project. She was-terminated on 26 June 1970 and signed both a secrecy
agreement and quit claim, After termination it became apparent that she
had considerable hard feelings toward both the Agency and GERENDE over
financial‘problems between her family and GERENDE,. While the Station
was not directly involved in all the financial problems, the Station was
involved in regard to her divorce claims against GERENDE's salary, a
large part of which came covertly from the Station, In July 1970 KDFACTOR-7
came to the Agency Headquarters and complained about her financial settle-
ment, In September and November-1970 she wrote two letters directly to
the Agency on the same subject. In late 1970 she also asked a Hague Embassy
political officer to put her in contact with the Agency; however, she did not
tell him the nature of her business. In January 1971 the Agency contacted
KDFACTOR-‘'s brother, a U. S; Army civilian with a "Top Secret” clearance
living in Alexandria, Virginia, and was able to resolve the financial mis-
understandings with KDFACTOR-7, In January 1971 the Hague Station
reported KDFACTOR had, without Station influence, obtained a job as social
secretary with the Department of State-at the Embassy. It is believed that
this job has probably solved many of her financial problems and should also
inhibit her from exposing her past work with the Mexico City Station, as
such exposure could jeopardize her job, The Embassy in the Hague was
briefed in general terms on KDFACTOR-7's background.

C. KDFACTOR-1

KDFACTOR-1 is a Mexican citizen and the brother-in-law
of GERENDE, He was hired by the Station in 1956 to assist GERENDE in
processing the photographic take of the KDFACTOR Project (at that time
the LIPSTICK Project and later the LIEMPTY Project), KDFACTOR-1

SECRE:

14-0000

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-8-

was later assisted in processing the photographic take by his wife,
LIEMPTY-5, whois GERENDE's sister. KDFACTOR-1 was terminated
in March 1971, and the photegraphic processing previously done by
KDFACTOR-1 is-now doné‘in the Station. The termination was amicable

_-and largely due to delays in film processing as KDFACTOR-I's medical

practice expanded, © There does not appear to be any security problem
in the termination of KDFACTOR-1 as he is discreet and also a close
relative of GERENDE, The security of processing the film in KDFACTOR-I's

_ Medical office was good as KDFACTOR-I's wife, LIEMPTY-5, was assist-
‘ing him with the processing and with the security of the darkroom.

D. LIEMPTY-5

LIEMPTY-5 was hired by the Station in 1957 to assist
KDFACTOR-I with the processing of KDFACTOR films, She is the sister
of GERENDE and wife of KDFACTOR-l. She was terminated along with
KDFACTOR-I in March 1971, Due to her close relationship with GERENDE
and KDFACTOR-I, she is not considered a threat to the Project Security.

E. Oliver G. SCANTLING

. SCANTLING is a Mexican citizen who worked as a Station
agent from 1954 until his termination without prejudice in February 1971,
SCANTLING is in an excellent financial position and has assisted the
Station in recent-years largely because his strong motivation to work
against the Communists, SCANTLING worked as a surveillance team
leader from 1954 to 1957 and then in the LIEMPTY (KDFACTOR) Project
from 1958 through 1966, He was the cut-out to LIEMPTY-6 and a back-up
principal agent for GERENDE. SCANTLING's termination was amicable,
and he is not considered a security problem to the Station or the KDFACTOR

Project.
_F, LIEMPTY-6

LIEMPTY-6, a Mexican citizen and long-term Station
asset, was retired in May 1968, He had manned the LIMITED photo base-
house with his wife and son assisting him, He had been working with the
Station since 1954, but age and ill health had reduced his efficiency.

’ LIEMPTY-6 knows GERENDE and SCANTLING, but is not aware of the

names or locations of any of the present KDFACTOR agents and basehouses,
While he could give information on his participation in KDFACTOR activities
up to 1968, he has no motive to do this and is apparently happily retired on
his ‘Agency termination bonus plus some financial assistance from his son-
in-law, He is not considered a threat to the security of this Project.

SECRET


= SECRET es

There was one indication that the Soviets were seeking

out the- LIMITED photo basehouse and may have had suspicions. concerning
LIEMPTY-6, This was a report by KDADAGE-10 that in mid-1966 Stanislav
Sergeyevich Silnikov (201-271103), a Soviet Embassy guard, asked KDADAGE-
10 to report on his neighbors near the Soviet Embassy, Silnikov expressed
interest in all the occupants of the new apartment building which houses the
KDABSINTHE photo basehouse,. but did not mention the KDABSINTHE base-
house keepers by name. Siinikov did name specific persons he was inter-
ested in and these included LIEMPTY-6, KDADAGE-10, of unknown .
reliability, said he did not give Silnikov any information, ‘but added that,
between himself and the Station, he suspected LIEMPTY-6 and had heard

it rumored he worked for the Americans. In 1966 Headquarters already
assumed the Soviets were aware of the LIMITED basehouse because it was
used for radio direction of the LIENTRAP mobile surveillance, In any case,
_the Soviets apparently took no action prior to the closing of the LIMITED
basehouse and the relocation of LIEMPTY-6 in May 1968, It is bélieved

this incident has no implications that would threaten the security of current

KDFACTOR assets,
5.. Current KDFACTOR Security Practices:

The two photo basehouses, KDLITERAL and KDABSINTHE
remain compartmented, as they-have been throughout the history of the
Project. The Station case officer responsible for the project meets weekly
with KDFACTOR-2, responsible for the KDLITERAL basehouse, and with
KDFACTOR-5, responsible for the KDABSINTHE baschouse, In these
meetings he picks up the product, provides new supplies, pays salaries
and handles miscellaneous administrative matters, These are car meetings
usually held in early morning or at night and the pickup puints are changed
regularly. Meeting time is kept toa minimum and meetings are pre-

. Scheduled whenever possible, The photographic product is processed in

the Station, thus increasing the security and timeliness of its handling

over the past practice of having KDFACTOR-1! process it in his office
darkroom, The case officer only meets with KDFACTOR-2 and KDFACTOR-S5;
however, in‘emergencies other witting family members of either basehouse
can be contacted and met, In case the present sites or personnel are com-
promised, the Station has rented another apartment in the building housing

the KDABSINTHE basehouse and has installed members of the KDCALVERT
Project as residents, This new apartment offers as good a vantage point

SECRET

14-0000

SECRET a,

-10-

for photographic coverage as the KDABSINTHE and.could quickly be
activated if for any reason the KDABSINTHE basehouse becomes

untenable, . . .

Theodore G. Shackley “

Chief
Western Hemisphere Division

> .
NOTED: A@an 2 Wha / a
ADD/P Date

SECRET

RA WREeEERERererreseeeeessrenn =

14.90000

read Ne ‘
a aa s
vnwent

wile

p2/? 1-599 *

MORANDUM FOR: Chief, Western Hemisphera Division

al
x

SUSJECT: FI Project NDFACTOR
FY 1972 Amcacnueat No.1]
Bicnniai Renewal .
Proposa: cor Siseal
Yoars i972 aad 1973

z 1971 J approved sudject actions
ea below:

1, On 10 Dees
in the amounts spe

a FY (97) Ancner

ax. $23, 620) to $27, S96,

bBo PY 1972 Renewal = For $i9, 006
ec FY 173 Renewal - - For $20,060

2. Task that the S.ation conduct an usdaied security ceview
oi this operation, giving particular aitcadan to tae knowledge-
ability of terminated agents and theis camities as diucussec in

Desens

paragrapa 3'of saierca: memorandum,

Mumoranau
(paragrapa

ADDP MEMO of 14 December 197%

1

14-0000

a , v

CASEICAROR : FAOCISSING AION 7
_ DIS PATCH a eee
. . 8 BC ¢ R BT ae oassonsmt we
_ Chief of Btation, Moxico > City — | ax [no rioting eracieED
wid ~~" - — 7 jour oxo 098 ~~ ~
: _ eat vost nner _

120" ~
Chiof,. Wostern Hemiephere Division 8 akrotes _.

‘Oproject 1 LIEMPTY FY 1971 Approval _
ACHON Biavaic RETAINS ©

Ref: DIRECTOR 038379

WEA

1. Project LIEMPTY has been approved for FY 1971 in
the amount: of $23,635. It has also been amended for FY 1970
in the amount of $10, 498 (from $38,970 to $49,468) in order
to cover termination payments to Raymond H. GERENDE and his
wife, LIEMPTY/19,. The approval carried a WOMACK caveat that
- termination payments to GERENDE and his wife must be made
on a monthly basis ag described in the referenced cable.”

‘2. In submitting the project renewal request we wrote

_ dn paragraph 2 under Future Plans that the Station would-
_gubmit up-dated emergency contact plans. Please submit ‘these
plang in your first quarterly progress report for FY 1971 so
that we can meet our obligation to the approving authorities,

3. <A copy of the approved FY 1971 renewal request is
being forwarded by split transmission for your files,

Spencer N. HUTCHINS

Attachments:
1 ~ LIEMPTY Project Renewal, left portion h/w

2.<-LIEMPTY Project Heneval, center portion usc
3 ~ LIEMPTY Project Renewal, right portion use

Distribution:
Orig. and 1 - COS, Mexico City

oe

LTEMPTY
ROSS RETRACT TO ONPATONSYHGOL AND MUMBIR.==~SOS*~*~*~*~*~*~*~*«~Y~CTR ~~
Ie
HMMH-17950 10 June 70. JUN 1979
CLASSIFICATION ale
ee SECRET 050-006-074/1
7 ORIGINATING

UW. * * _ COORDINATING

WH
ee

RELEASING /

+ J OFFKE SyMBOL bart Tie swage I ver raa5 = , Tx -
C/WH/1 lo June 70; John Cl Murray ~
~ DISPATC*.

ONG EL

i" «53 use PAE sufi
mF. th

se a EE ae mere) eeeme

Leen rete she inet ewe warns


14-00000

=™ ; , a

SECRET PUNDING
(When Filled In)

.

7 emit,

a) .
: UA

uo. > pate_/#<~ 70

(DOCUMENT # POR

. THIS PROJECT)

NOTIFICATION OF PROJECT APPROVAL ACTION
10: CHIEF OF STATION (BASE). Pit bite

ATTENTION: FINANCE OFFICER

\.

ah

\

INFO:

'  prosect_4 /¢%y L7Y PAN Q/35- 1x09 ST

aw fy Wes Pa? «
TYPE OF ACTION PERIOD oF action" {7 ‘/ 70. ae ait 2s: anount~9% Z Fad

:

NEW » PREVIOUS ACTION IN THIS FISCAL YEAR a 7440 2 2
ft .EWAL aan TOTAL FISCAL YEAR APFROVAL . °
EXTENSION —_ wae Tha
TERMINATION FUNDS AVAILABLE FOR KQS USE wae a Zz Pare Tal
AMENDMENT FUNDS pval ABLE FOR PIED USE :
OTHER —_ ete Ge ee tardite ied fo “fle op ley,
| 7
CHIEP, WH/B&F
HQS USE ONLY
PROCESSED APPROVED TYPE OF ACTION PERIOD AMOUNT

~ the A j Em PT ‘J
Et i
. . . Lic vaidaaietot Spe
w . SECRET
(When Pilled In)


14.90000 , -

an Ne, SECRET _ - wth /}

* Te : PROJECT APPROVAL NOTIFICATION ;
7 , . , (Tjea LaJesoraratany
5 ever T—Jevoero

APPROVING AUTHORITY AMOUNT

PERIOD OF APPROVAL

rnow 2 Sdly 1970

CONDITIONS OF APPROVAL

SIGNATURE

MPS/9G

DISTRIBUTION

_—, — —
FINANCE QU0GET 1 | OPERATING DIVISION case ja uPs a6
DIVISION -  Orvisson CHIEF QF SUPPORT OFFICER |

FORM 849 vse Previous SECRET tt

6-66 KOtTIONS.

(3)


14.90000

~ SECRET ; we |
PROJECT APPROVAL NOTIFICATION

LJ propricrany

(C7] suesioy

Division

Das
case orrican RATENSION
Jaok Barry 4157?

AFPROVING AUTHORITY

PERIOD OF APPROVAL

FROM 2 duly 1969 ro e) duna iV thor cise

s7MBOL
CONDITIONS OF APPROVAL

Project anonded for an additional 310,198 for FY 70.

SIGNATURE ,
(Slened) E. Xk. Horas,

DISTRISUTION

aupeer ~*~ OPERATING O1vision | 4 Case

DIVISION, CHIEF OF SUPPORT OFFICER
FORM vse PREVIOUS [rans se Ge ‘s)
6-46 849 EOrTIONS. SECRET {a 8


14-0000

ft ee. ere > . t 8
! extne ‘aRIAT.Dissemmnation * Cr assiFieo MESSAGE Torau Cog ts fer A ____ aout 19s con irs sr
). aseepenmare : ——_
. - . (When Fi Lsvrecnetens =
\ ADVANCE COPY Om —— Eas Sis: or. acs PROWIBITED . f :

. : INOEA, pve!
a ee a Cuassey toce Cr .

: ove I aren nach — aL

\ oitsue a! Pr

. ; e__/O radide ED nctunn ro ——______ eraner
i : ACTION UNIT 4
ous 1] FE? lav. sks | ;
AC TION WO, . 7 .
GIL

t

: SECRET 1923592 MAR 70 ‘CITE MEXICO CITY 2766

: DIRECTOR ~~ _ oo

. 10h :.046 44¢
: LIEMPTY

REF: DIRECTOR 018246

“Le POUCHING LIEMPTY REPORT 26 MARCH. REGRET DELAY WHICH
DUE PRESS OTHER ACTIVITIES REDTOP FIELD.

2. FILE: 50-6-74/3. GP=1

“eS

co

- SECRET

SECRET .
10 +4 }} A. whe todee al ao aes ;
ia a )
| 7 Ap EAMG EES eats
Put OM “Lt Lf EAMG /
i
H
v

5

Se _, 1 RES ea
_DISPA ATCH [oo sremet heen uu.

Ne SO ~ 7 — t -
Chief of Station, Mextco City ‘ Let IAG A FEQUIRET |
jee - : ° ~~" ™ cee 7 : Towing ARsvdE “wo! : Y
' : k
; ‘e Rotts |
a es 7
pe gee gene em ere eee ee
+ Action Required: None, FYI
| Project LIEMPTY has been approved in the amount of
| $38,970 for the period 1 July 1969 through 30 June 1970.
| Of the total FY 70 amount, $38,470 ig authorized for field
use, and $500 will be retained for Headquarters use. |
Anthony B. WELDRAKE |
i

Distribution:
Orig. | & 1 ~ COS, Mexico City

RHR SAIC SeUABOL AND NUMLER ETS ee ta
tg SEP 1969
ween. neato September) 1969

mags \ AMMW - 17472
bit ¥- oes (RC oa meee 8
| | Le.
as gS Was

LPF:

J j. 3. Barry/_
{GU ROINANING

RI -1
CHRONO -

! ce 1; “tedapt | Ernest 3-7 wae "beat tenes J. “Pefkerda nos
- Bis DISPAT CH

ty 53° use previous EDITION

MFG Bren.


14-00000

Date

NOTIFICATION OF PROJECT APPROVAL ACTION

“T0 FIELD FINANCE OFFICER

TO: Chief cf Station aa ——
peor La Mew! Fnnces ob

PROJECT: L/S 2AIT9
PAN: Ne AGO
TYPE OF ACTION:
omneR Codecs) ee preg
- NEW

RENEWAL

EXTENSION

AMENDMENT

TERMINATION AND DATE

PERIOD OF ACTION: AMOUNT
FISCAL YEAR PROJECT APPROVAL: FY_ 4%  —FY

THIS ACTION:

PREVIOUS ACTION: LELRO
TOTAL FISCAL YEAR PROJECT
APPROVAL: YZEL0
FUNDS AVAILABLE FOR HQS USE: to
FUNDS AVAILABLE FOR FIELD USE:* — 2% ¢2¢0 .

#TOQ BE USED AS A GUIDE FOR DISTRIBUTION OF OBLIGATION AUTHORITY.

SECRET
(When Filled In)

1yg00000

PROCESSING ACTION . V
MAREED FOR MMOEKING ‘
Wo INDEGING REQUIRED y

ONLY QUAUTIED DESK
CAM FUDGE IRDDING

Renewal Reeuest
acon RrQuiats irre : .
: References: 4. HAMA- ta, & November 1vut
1 ’ BB, IOMAec3014, & January 195%
: f Cy. Weel ditt, 21) May loss
DOD, Hibbhethonu, 22 July 1905
. ue Man bes, ls January 1959
: F, HIGiNes, . Janvary Lye -
i ° G. WuAICe CUry ud0u, Li Mareh 1969
: Forwarded berewlth and under separate cover by split trans-
mittal §8 a request ior the renewal ef Proyect LIEMPTY ior FY 1970,
Funds in the anoun€ of USShe io are being requested,
ferfWitiard Cc, cures
. ; RECORDS OFFICER STAMP
tha f fobioeies ugtion is hat
i che, A
Attachment: , Af appropriate.
1. Pr ee renewal request, right side i/w
2. Pre;ect renewal request, leit sife u/s/c;
t
oa i ~
atk, ue i .
Digtribution; = “ _ Tart
~ CAM w/att b/w and ussfe ; fisted me eae
‘ A C/SH wfatt A/w and u/s/e aecisst3' 20
AA pany
dart va fet
CROSS REFERENCE TO DISPATCH SYARSOC AND NUMBER
BENS 710 ld March (yoo
. a ~~ qaccitiranay Thins Fre wii gee . 7

LOntaT4/1

14-0000

K

: ; .
a . :
3 | a .
i i
|
3
; :
: i
3 REQUSST FOR PROJECT RENSWAL
y r a . '
|
q
PROJECT TEMP TY CASE OFFIC
i
t
. i
1 '
:
: STATION. Mexico City CHIEF (OF STATICY
i
'
i
|
|
ocper NP :
pecorns OFFICES aan
The fovtewing Sy eet a is aie tT
eth e ise i
. tones OEE
t 1
i
'

Cee wae RE RSET gate nase

ee BE PE Fe:

per ces megreseapeay .

nsiregy

La red a oe


14-0000

~ oo
ae
PROTECT LUEMPTY
. ee EST FOR RYNEWAL

CURRINT CBJECTIVES

A. The overall objective of Project LIEMPTY, now in its eleventh
year of existence, jis to collect operational information oa the
FISTLAL installation, its personnel and visitors, as well as
related targets oOo. opportunity through stat tonary /mobile photo
praphic and physteal surveillance wechanisms, Corollary
objcetives which are to be fulfilled through use of the LIEMPYTY
installations, mechanisms, and persunne) are as follows;

1.0 To provide delaited operational loformatton pertatuiog
to the daily iovements and activilies of PISTYAL personnel,
particularly those individuats of intelligence interest,
as well as iniormation on the £dSTSAN physical plant and
visitors to the premises,

2. To collect operation#t) antormation on persons associated
With ISPS pevsoned and on individuals known or srsvected
to have conneetions with the Fd i

EVcAL entethtrence services
or other bestile proves whieh ave duimieal to the juterests

Of LNFORT, .

~ Oo. To provide cpermitsonai seppurt, counter svrveiilance,
and/or other protective serveven to VORTRM perseanned and
operations, us may oo Towles wpoa the Station or rs cay be

deened neeessavy,

LE, The ahovwo chieetives are to he I Cilled threcnh centinued
tea dart Leitation ow: the LILYRIC aad VIC SaSen
fren se Ponohite catty amd the serviees of Lone -tine
nm, She UTLIMPTY Prorect is the
parr ugatase che
en ois conpletely responsive to Privrity Ael

Taw

the

ur OOK

pm.

eontraet aceprt, Raymond ', GIRONA,
cornerstone of the Statioats ereratioual preg

and aS os

Crnerafingn Birective,

C. Throucshout the Project vear under review, Project LESVpty
continued to contribute direetly and sientijceantiv to the tuliill~
ment of Station and Headaanrters’ requests and requiresents for
coverape of various tarrets falling within the above cited (ramework,


14-0000

“a

During: the Project year Project LEEMPTY provided al) oof the
Lixed operatiount photographs and physi.eal surveillance reports
used in Mexica Citys Station's operations targetted asainst the
FUSTEAL installation and personnel, Specssic examples of the
LIEMPTY Eroject's pregress and contributions willbe Lound in
Section 3 below (2EFECTIVENESS),

'

CHANGES : :

A. Cperational

1. The majon change during the preceeding: period has been
the closing of the LIMITSD basehouse and the termtnation of
LIEMPTY=—. This has resulted in considerable financial
saving with nO loss tin ellicioncy-elo the contrary, as a
matter of fact. The major reason for the change was the
fact that LTEMPYy-.o was frowtnp less reliable with age. He
was not always able to be on the job, and when he was, his
fixed surveillance reporting was occasionally inuccurate,
and bis photerraphy was often poor, There had been
considerable overlap between LILYRIC and LIMITED reporting,
and with the closing of LIMIT#D, the LULYRIC working hours
were extended slightly so that Cull working hours of the
FISTEAL instablation continued to be covered. ‘The only
disadvantage to this arrangement ts that the vantage point
ol the FISTEAL installation which had been shared by .
LIMITLD and LILYRIC will now go uncovered during pertods of
annual leave by LILYRIC personnet (the LULYRIC personnel
are all members of one family and normally take their

leave together),
t

2. There have been no echanves in the operating procedures
and techniques of LUSMPTY<0 in the LICALLA baschouse, The
refinements deseribed in the previous Project Cutline have
been elfective and have been maintained, The same can be
said of LYEXTRAP, which has become a much more flexible
tool since its partial interration inte the LIEMBRACE team,
There have been no changes in LILYRIC precedures, other
than expansioa of coverage to include the entire working

week,

B,. Financial ~ LILMPTY=9 was granted a salary increase, etfective
1 May TOUCH, In recognition of his excellent job pertormance,
LIPMPry-14 and -27 were eranted salary increases on ld May 1968,
largely as compensation aor the extra hours they agreed to put

in to ‘nsure fulletime coverare of the FJSTEAL tnstallation by
LILYRIC, Memoranda of Cral Agreement covering these three salary
increases were florvwarded with HMMA-34573, 2 May 1yes8, Finally,
LIESETY-Ll was sranted a salary increase cirective 1 January

19S, in recopnition of his increased work load with the LIEMRRACH
team, MCA was vorwarded with HMMA-5 191, 25 Do cember Lyos,


14.90000

ee

Cc. Personnel .
J]. As noted above, LIEMPTY=5 was terminated effective

31 May 1968 tn connection with the closing of the LIMITED
bazehouse, Termination was completely amicable, and
LIZEMPTY-" received a generous termination bonus,

2, LIcMPTY-26 was hired as of 1 May 19.8 to help LILYRIC
personnel maintain their expanded coverage. No security
factor is involved, as LIVPTY=2i is part of the same tanily
as the rest of the LILYRIC personne], LILMPTY-}2.) had been
granted an OA in 195 and had been used sporadically since

that time.

3, An amendaent to GeRENDE's contract has been requested,
This amendment would puarantce GERENDE termination benetits
equal to these provided for by Mexican law, in tho event of
GiRiNDE'S termination by WOFIRM. The amendment would also
provide GeRENDEN with a wraduated seale Gi beneiits should
he deecsde to resign, See HMMAn33L2, 27 January 1909, tor

detallis,

EFFECTIVENESS

Throughout the period umier review, Gach operational component
of Proiect LIENPTY contributed actively and coneretely to the
Autsalinent of the operational tasks levied on Station Mexico
City, High-lights of the accomplishments and the achieveneats
O01 each component are cited helow:

A. Fixed Pasehouses
Stele ain nc nRataaAE eRe

2. LIMITED

Uint?!] tts termination, the LINTT™D installation provided daily
photeyraphic, coverace and physical surveillance of the main
gate of the FISTNAL installation, During the seven-month
period from 1 November 1947 through 31 May 1968, the LIMITED
base provided 911 frames of operational photographs. In
additicn, the LIMITED base provaded over 1,000 pages at
physical surveillance reports,

2.- LILYRIC

During the Project year under review, the LILYRIC installation
provided extensive photographic and fixed visual] surveillance
of the front of the FJISTLAL installation. The LILYRIC base-
house provided the majority of the operational photoyranhs
produced by the LIEMPTY Project, During the IS-nmenth period
fron 1 November (1967 through 31 December 1968, the LILYRIC
basehouse provided 15,331 operational photographs and several

14-0000

thousand pares ef physical surveillance reports covering the ee
daily movements of all FISTAAL officers, As a specific

exanple of the impertance of LILYRIC coverage, it was LILYRIC
photes which made pessible the identification of a WCLADY

citisea who had been in clandestine contact with an AEGRIP
ofticer., This information was turned over to LNERGO, which

was pursuing the case, In gencral, LILYRIC provides the

Station with a Jarse percentage of the CI raw material .
collected on the FUISTEAL tarcet, such as automobile license
nunbers, PCS and TDY arrivals -andtdepartures, unusual

activities such as demonstrations, unusual or lengthy

absences of personnel, etc, This information also has

positive operational value, but its most important use is as

the wajor source of jdentificatton of FISTHAL personnel and

ef infermation on their movements, The Station has frequent
requests from LNURGO which can only Le fulfilled by LIAMPTY
coverave, and this "permanent and cowplete record” of FISTEAL
activities is dnavaluable for servieing the CE requirements

er beth VOFTRM and LNERGO,

SS. LICALLA 2 2 2 i eee

Dering the above cited Wiemontin period, the LICALLA installation

previded photosrachie and physica surveillance coverare of

the back of the FASTLAL installation and its garden and

patio area, This coverare provided 5,125 individual photographs

as well as numberous surveillance and observation reports.

These reports incivded daily, weekly, and monthly Summaries

of activities, semiemonthty attenuanee renovis (of FISTEAL
various Special reports, and special intensive

eovevare of tarrets selected by ihe Ctation, Jt should be

that the LICALLA baseheuse aliovs Station Mexice City

theiy a. feduty and

persemnel),

nated
te erve the EISPUAT, personne t durloag
reereationad bou The LICALLA Jostaileation has become
the most taluable of the hasehouses, net only begause of its
so vantare neint bub abso because of the porceplivencss
Mis sorvellianee reperts have frequentiy given
ssations amnoms the -

Sy

.
Sasteht foto povecnal asso
vpersoune? and ave enabled v ©® introduce yvreater
tVity and ef Poetivenr t entive LILOTY operation,
\ reporting bas the createsk nesitive operational

ii provides raw materiel] tor use in tareet

Finally, the LICALLA Ch fs oceasionaily used ina

cons conducted from the

2 Paho

since
ion. .
rE of various technical opera
eormolex,

Be Sur Fined Pascheuse Jf fec

LIOMOTY baschouses (LIMITED, LICALLA, and LILYRIC)

2g Gl operational
photocraphs during the Laementh period revi above, Ths
photorraghic coverare, linked with the physical surveillance
reports prepared by each basehaouse, has proven to be a most
reliable and viable tool tor: :

Vea

The fixed
provided ayproximatetys 21,967 individual ¢

t
cit
vht.al

ily comines and gofars o1 FISTEAL
enous emplovees.  .

1. Following the ¢
personnel and indir

2, Confirming the identities oi ; staffers and :
their visitors (some of whom are TULADY citizens).

3. Aseertaining and verilyines the reidtive rank and
position as well as indicating the specific duteclligence
service connectien of various FISTSL

officers,

4. Providing detaiied reporting on the movement and habit
patterns of selected targets of srecial interest.

; °
Providing physical faeilities fer the support of

iz
Oe
ane surveillance operations,

various operational, technical,

!
C.. The Nobile Photocraphic Unie |

Le. During the period under review, the LTENETRAP mobile
photerraphic unit cevered 4° photasrarhie assipaments in
support of Mexico City Station's FIST .» PUERUMEN, and
Communist Party operations, An average of two to three days
is spent on each assigned target, usvally rotating the time
of day the coverage is provided,. The LIONTRAP operators
-LTSMPTY-10 and «11, have consistently turned in a useful
and excellent quality photographic pretuct.

rent, both operators

2, In addition, wiiile not on an ass
have resularly assicned duties, LEM TY-
bility for obtaining, renewing, and servicing most of the
Station's accommedation addresses. The addresses are
serviced three times a week, LISNPTY-1!11 has been serving
partetime for the vast vear as the Seventh member of the
LIEMARACH surveiliance team and has rervormed well in this.

ie

capacity.

MPTY Principal Avent

ENDS = 1

D. Raymond H. GER
During the period under review, Raymond H. GcheND. continued in
his role as the Project LIEMPTY principal axent.
as the full-time cut-out te the LIMITED, LILYRIC, and LICALLA
basehouses and bore the first echelon ag
for the velated personnel. In additic
bear the contact and a responsi
of the LIEMPTY photographic developir

LIEAPTY-4.0 GEREND#'s overall operational ivnment involved

at least 10 clandestine meetings per week. im addition to his

meetings with the LIEMTTY Project case ofzicer. It should also
be noted that GERENDY nade numerous and esseatial contributions
to the sensitive Jum Operation and a
with his detailed area knowledge in ma
to make tndependent investivati :

EGCSND!E continued to
s for the operater
ny laboratory,

stances, He is used
He

10 has the resnonsie

GERUND: operates

ne bandling responsibilitr

ssisted the Station greatly

14-0000

assisted the Station in its MHRAVEL preeran, As a part of the -

Station's effort to vreaden GEREND="s herizoans and to tike better
advantage of his capabilities, GiNsXDY was made the handling
oviicer supervision,

ofiicer tor sRFAIN-3 under close cas
Similar tasks are envisioned for GLRENDE in the future--agent
handling as well as the spotting an& assessment ot operational .
leads. These tasks are all assipned with due reyard for

GERENDE's primary responsibilities, with the aim of getting the
optimum use out of a capable and experienced field contract

agent,

he. Gverall Stiectiveness ~ wa

As outlined above, each individual ererational camponent of the
LIEVPTY Project, with the cxeeplion or the phased-eout LIMTTLD
basehouse, contributed regularly and sinnifiecantty te the fulfille
ment of Station Mexico City's operational vorocram, Sased on the
continued excellent performance oa! Projeet personnel and the
overall contributions of this Project, the Station strongly
recommends that this Pro;ect be cont iaeed during the forthcoming
Project year as an essential element of the Station's operational

Support apparatus,

PROBLEMS AND SECURITY

During the Project year under review there were no known incidents
which adversely aifected the security et Project LISMPTY or the
related personnel, The termination of LINMPTY-c caused no problems,
nor did the construction of a maid's raom on the root of the LICALLA
installation, adjacent to LIEMPTY-9's pieto point. There is no
indication that FUSTEAL personnel had anv suspicions about the
construction work. The exposure of a LIEMBRACE surveillance

vehicle (see NeXTCO CITY 283, 28 Fehrvary 10-9) caused momentary
econctrn because the vehicle had been bought from a dealer where
LIEMPTY-O9 has a part-time job, Along with all other employees

of the auto dealer, LIES©TY-9 was questioned abort the purchaser

of the ear. While L PY. was worried because he knew the
purchaser of the car and was able to guess what had happened,

the investigation was dropved and the case closed without any
adverse effect on LIEXDTY-y or the LICALUA basehouse.

LIATSON AND INTOR-AGENCY CCORDINATION

Not applicable to Project LYEMPTY,

PLANS

4

A, The changes made in the period under review have been largely
technical, Witt ihe exception of a centinued expansion of


14-0000

nit

non-LIEYPTy-oriented operational activity by GURLNDE, there are
no significaat’ operational chanses centesplated. ULEEMPTY is

a prorcet designed to support the Station's RADTOP proyran and

is useful only as long as it supperts that progran eilectively,
The Station believes that the seppert has been eftective, and
that the product of the operation is valuable, Cccastonal miner
changes will undoubtedly be aade in response to specific
requirements and to continual etforts tevard imprevement, but
continuing emphasis on the FUSTSAL tarset ior the reresmeable 7
future means, armoury other things, that the LUESPTY Project, in
essentially its present fora, will coutinue to be a necessary part
of the Station's program,

B. No need fov expansion, in tere of personnel or tacilities,
js foreseen, but costs will preoabiy *vinb slowly but Steadily
to permit salary increases and to keep up with the rising cest
of living as it affects utilities ar plies. Replacement af

GARTND 's i vehicle (which was fa the mrevious
Arajycet citiine, as th boc? be the Siatwen
to coser the period cndiac so : BUCA re Hoeecsusar
Inte fn PY GP 0 The evrrene ore 26 betne written ov tik .

Pact replaced in FY Taye
seoneeessary ia the tores

& the velreie was
ther replacescp?

agsaucption >
apd taat ne
seeapte fut

approved for PY vs

ree ak
Tate

PPe-ect spendtuc
fievonthdy account
Vere Submitted
YVitiecer via the Pra
nid tures; rade in the
¥ three beurs of case
ine is reauiréd eacn week
istrative, and analytical

ris Ligeve dees not include the

iD-.)

Aymond Hy Gincs

or fon ort

with nortiacant Yee
Raymond yy
ease of fic

yoda eteht heurs or anal
to Fulfikl the orevational, ad
requirements oF this project.
40 houreweek put ino remelaris

Be. TY Ua = It is resvested : coeet LIAMOTY ce anpreved
in the Cunt Gt JR,900 dollars ver roaad (this ¢

represents rourhivy a 10 pereent Secrease cron the arount
programme! tor the previous Proceet year}, While no larre
expenditures are anticipated ier the re placement of phetovrar
equiprent, durian the Lorthcoar od, inflation vay resul
in ristag' cast ef veilities and supplies, and salary increases
mav be: erants

as indicated above, . Cetatlod breakdown of
Frovect expenditures for FY To ™N,

hie

v
a
L

fo and N71 Sollows:


14-0000

FY 19-4 FY 16°70 FY LO71

SALARTES : \
__ ZOaR Aa
taymond H, GeRuNDs (P/A) $ 5,500 $ »,600 $ 6,500
LIEMPTY=-4 (photo processor) 2,400 2,400 2,400
LIEMUTY=<{9 (LICALLA) 4,520 4,320 4,320
(LIENTRAP) 4,224 4,224 4,224
(LIEN TRAP) 2,618 2,785 2,730
YENPTY=13 (LILYRIC) 1,835 1,535 1,536
LIEMPTY=14 (LILYRIC) 1,824 1,24 1,624
LIEAPTY=<$21; (LILYRIC) 672 672 672
LIEMPTY-21 (LILYRIC) 1,728 1,72% 1,728
LEGA TY-.s (LIMITED; Termination i
t payment) 2,750 =e -0- |
Christmas bonuses 2,140. 2,140 2,140
Contingency for possible ian “
salary increase 500 2,090 4,900
SUB-TOTAL $31,210 $59,060 $32,080

REAL ESTATE

GERSNDE Dark Room Rent :
$ 9.0 § - 940 $ 980

(: T 137) - 94
LICALLA (MEXT 03) 1,248 1,246 1,246
LILYRITC (MEXT 132) 2,889 2,859 2,880
S/Il Utilities 1,000 1,100 1,200

SUB-TOTAL 3 5,058 5 0,188 $ 6,288
VEHICLES
N¥~-2 Of maintenance $ 400 S$ ~O- S$ -0-
MV-2823 maintenance exe re] &00 1,000
Purchase of new MV and -
maintenance 4,000 400 200
SUB-TOTAL $ §,000 3 1,200 $ 1,900
EQUIPMENT
Maintenance and replacenent

of phetographic equipment $ 200 $ 500 5 500
OPURATICNAL HXPENSHS
Vurchase of Film: rental of
post office accommodation voxes;
rental oi vehicles; contingency .
fund $ 1,000 $ 1,000 $ 1,000

38,970 $41,370 _


14-00000

CG. As in the past, Saycond H. G2

UNDE will subnit semf-monthly
expenditures with avpropriate

There will ve no requirements for -
Station’s capability to provide.

accountings for all Yroject
receipts or certivicatious,
fereign currency béyand the

AMERGUNCY CONDITEFONS

A. In the event of civil disorders or the evolution of complete

enrorced neutrality on the part of the host rovernment, it 16

believed that regular operational contact ceuld bu maintained

with the majority of the active LIvrTy agents via Raymond He
f

GLRENDE or in his absence, Oliver G. SCANTLING, |
In the most unlikely event of the establishzent of a regime
limited centact could probably be

the active Proaiert arents,

it js hishiy probabte that

B.
openly hostile to LNYONT,
maiutnined with the maiovrity on
However, under these erreunstances,
the activities of this Yroreect would be somevhat curtadled,

CC. Revised and upedated emermenecy contact plans cor use with
Raymond Hf, GERanDs aad Obiver G. SCANTILING ave on tile in the
Station and at Headquarters (See Hel bods, dated Ul reoruary
lv6S and HMMA2}25202, cated & February 1966).


SECRET

poof, NOTIFICATION OF PROJECT APPROVAL ACTION
, _ TO FIELD FINANCE OFFICER -

_ TO: tater of Station Maser. dt ih. Lah yy

PROJECT:- Th emare
PANG eh

TYPE OF ACTION: -
Korner Ce bedabdti Ys liana! owe Cranes
NEW te est nebs sacle, xe pe eee

i ted Mats,
RENEWAL f' tu Che y

EXTENSION
AMENDMENT
TERMINATION AND DATE

PERIOD OF ACTION: AMOUNT

FISCAL YEAR PROJECT APPROVAL: FY LL FY

_

-THIS ACTION:

PREVIOUS ACTION: | _BS20
TOTAL FISCAL YEAR PROJECT
APPROVAL: 3520 __
FUNDS AVAILABLE FOR HQS USE: . - 44200
1 AG fe

FUNDS AVAILABLE FOR FIELD USE:*
*TO BE USED AS A GUIDE FOR DISTRIBUTION OF OBLIGATION AUTHORITY.

1 :
i

: boy

SECRET
(When Filled In)
I ' 4

14-0000

ogee ao0 man
“TING ANC®OR IPPTIALSS Ster"By
— —— ee

: ~
IRETaMAT OVSSEMINATION
sat SOTUNED

SECRET emenren aren

(When Filled In) reer we.

CE EE
, ee core O seuso oO e.orreD

vee O no

wba =O

PAbsry 7O PLE NO

sd ar

Ossaw 2 __nne ;

"ETON

REF TO PLE NO.

onancu() orereov aa

<y DIRECTOR Hess iht 84}
LIENPTY wv)
1. PREPARATION LIEMPTY PROJECT RENEWAL REQUEST DELAYED DUE

RIZZUTO'S RECENT TDY HQS. WILL POUCH 1S NARCH,.
Qe FILE 50-6-74/ 1.

SECRET
“a 7
ua
m4
-
Mla

tS copy
HPlar 67 :
SECRET pe 5g - 6-74 Hi


14-0000

aD |. Rene AON
DISPATCH pucnEe 7
- : a | MAREE FOR NOI

0
Chief of 8 tation, | Mexico ico City, _ _ ___& [xo morte erquiero

int, OMY GUALIIO OFS

CAN GOCE INOEING
Chief, Western Eouisphore Divisies iceovns
went 5 ” .

. 4
> on | LOOPY Project Bonowsl

deen Book Dispatch Ho.6769, 25 Hovenber 1968

This in s routine reminder thet the LIEMPTY Project Renewal
for FY 1970 will be dus at Headquarters 14 March 1969.

‘I LD

norets W. DAMICORR

Distribution:
Orig. & 1 - CO8/Mexteo City .

; rt pees
Nae
ane

(RONS REFERENCE TO SPAT aR TaD WME mi SO GAN 1869
sy an 38
GASSIFICATION , fos hl eusR
| ud COPY BECKER? 50-6-Th/d
: ~__ ORIGINATING

plone nyry
COORDINATING

oe a [owe

RELEASING

OFFKCE SY MBG oat OFFICER S SIGNATURE
wH/1 9 Jan. 64 W. J. Kaufingh
“* 53> use eacvious common, ‘aon Dp i § fos AT ¢ H

MFG. 1-86


14-0000

PF —_

er erences, ne
CAS HICATION PROCESSING ACTION -

DISPATCH | SECRET ann 08 porto

WO FDERING REQUIRED
OMY QUALIFIED DESK
CE IU0GE INDUINS

eptastasitnith nna
| | MICROFILM

Chief of Station, Hex

ico City

Chief, Western Nemisphere Division

Cor ,
f Approval of Project LIEMPTY
ACTION REQUIRED - COHULENLES -

Project LIEMPTY bas been approved for the period 1 December
1967 through 30 June 1969 in the amount of $69,725. Of the total,
‘$26,205 ‘would be disbursed in FY 1968, and $43,520 in FY 1969,
representing no change in the funding you requested. $550 is re-
tained for Headquarters use during FY 1968, and $200 (tor photo-

‘graphic equipment) in FY 1969.

Zug

Theresa H. BA

Distribution:
Orig. & 1 - COS, Mexico City

€S COPY
ROSS REFERENCE 1D _. bapy DISPATCH SYBASOL AND HUMBER
WAMW-16419

RI

CHRONO.

Ceti b ekeedeee:
. 3. Kaufman

SPATCH

ole OFFICER $ SIGHATURE Lat

yn
Z
: +40 ue
13") 53) use aaevious corion. ' . D :

MFR 1-55

14.90000

a SECRET
; / ; (When Filled In)

Date~-

NOTIFICATION OF PROJECT APPROVAL ACTION
TO FIELD FINANCE OFFICER

TO: Chief of Station (Basey__ 2

‘

INFO!
PROJECT: LILLE ZZ
FAN: =

TYPE OF ACTION:
NEW
RENEWAL
EXTENSION
AMENDMENT
TERMINATION AND DATE

PERIOD OF ACTION: s- f AMOUNT 7 -

- FISCAL YEAR PROJECT APPROVAL: F¥ FY ‘

THIS ACTION: a
PREVIOUS ACTION:
TOTAL FISCAL YEAR PROJECT

APPROVAL: eo ,
FUNDS AVAILABLE FOR HQS USE:
FUNDS AVAILABLE FOR FIELD USE: *

#TO BE USED AS A GUIDE FOR DISTRIBUTION OF OBLIGATION AUTHORITY.

SECRET
(When Filied In)


14-0000

FROCESSING ACTION

MARKED FOR DIOEING

| DISPATCH

yo Chief, WH Division EO INDEXING REQUIRED
BO, ny ° : ONLY QUALIFIED Ot5K
Chief, SB Division CAN RUDGE INODLING

‘ =| Chief of Station, Mexico City aa mucnorna

LISWETY Project Renewal Request

L ACCA REQUIRED - REFEREES

Forwarded herewith and under separate cover by split transmission
| is a request for the renewal of Project LIEMPTY for the period
\ 1 December 1967 through 30 November 1968. Funds in the amount of
: $43,520 are requested for the project year; $26,205 to be alloted

in FY 1968 and $17,315 in FY 1969,
RECORDS OFFICER STAMP

The following sstton is ‘ cae
outhoriced: on é i | A fe é “*
— -- 7 for/Willard C. CURTIS
4
Sisuca oy, 26?,
a
R.Q. 2639 - Unge
eee é
Noto: 1 it eest » elite
reasons crdinate
1f appropriate, ;
Attachnent;
A - Project Renewal Request, right side (herewith) . i

B - Project Renewal Request, left side (under separate cover)

OE Py
2 - C/WH, w/atts, A&B -
2 - C/SB, w/atts, A ¥B

a soo 1
. Jad

AS s/tewove?

ot

4

herr on fr
DISPATCH SYMSQR AND NUMBER DATE
HMMA=33455 8 November 1967
CLASSIFICATION its] FLUE NUMBER
, SECRED 50-6-74/1


$0 GaN 1868

‘MEMORANDUM FOR: Assistant Deputy Director Plans

SUBJECT; Supplementary Appropriation for LIEMPTY

It is requested that the figures in the attached
field- project renewal be amended and that an additional
$26,205 be approved to cover the period 1 December 1968
through 30 June 1969. in order to carry the LIEMPTY Project
to the end of a Fiscal year. This sum is identical to that
requested for a similar period in 1968S as there is no
present justification for projecting any change in the
financial requirements. The supplement would bring the
cost of LIEMPTY to a total of $69,725 for 19 months.

A iam ? Gleb

Chief,
Western Henisphere Division

peconns CFFICe ste


MEMORANDUM FOR: Deputy Director for Plans
“SUBJECT : LIEMPTY Project Renewal

1. Renewal of Project LIEMPTY for the period: 1 Decem-
ber 1967 through 30 November 1968 in the amount of $43,520
is hereby requested, $26,205 would be spent in FY 1968 and
$17,315 in FY 1969. The project was budgeted for $45,000 for
FY 1968; funds are available within the Division. Estimated
costs for the coming project year are a little less than the
amount programmed for the previous year and a little more
than what was actually disbursed.

. 2. LIEMPTY is designed to provide physical surveil-
lance of the Sovict Embassy in Mexico City. It covers three
Nearby properties (two in front of the Embassy's sole entrance
and one behind the garden) from which visual and photographic
surveillance are carricd. out by experienced personnel. The
project also covers a darkroom where a technician processes
the photographs, In addition to collecting this basic informa-
tion on a primary target, certain of the LIEMPTY personnel
are also available for miscellaneous support tasks, such as
servicing postal boxes, and running fixed and moving surveil-
lances. The photo truck which comes under the project is
used on other targets as well, such as CP members, satellite
embasSies, and Latin American exiles. One of the basehouses
is also used as a radio dispatch point for the LIEMBRACE sur-
veillance team, but this function has been minimized during
the past year in an effort to prevent Soviet interception of

the signal,

3. a. The Mexican desk asked the appropriate opera-
tional component of SB Division for specific comment on the
value of LIEMPTY, and received the following:

"This rather unique operation has
unquestionably made a major contribu-
tion to the increasingly effective
Soviet Operations program of the
Mexico Station. On the positive
side its principal value lies.in the
identification of the Mexican and


14-0000

SECRET

\ ~Qe

Sat

third national contacts of the Soviets,
; | from which we must select and develop
: . the access agents so vital to our oper-
‘ “3 ations against the Soviet human target.
ot LIEMPTY also provides us with a much
: ‘¢learer picture of the inner relation-
\ . ships: and activity patterns within the
Soviet mission itself, which in turn
facilitates effective targeting. The
1 CE value of a LIEMPTY type project as
i ..  & monitor of real and potential agent
contacts is of course obvious. It is
i a important to note that LIEMPTY is not,

: as might be the case in stations of
lesser overall capability, a simple
case of photography (or observation)
for the record, Rather it is an import-
ant facet of a concerted high priority
effort to get at and recruit individual
Soviets,"

b. Station reporting has been in a similar vein.
Information produced is largely for operational purposes and
we often lack detail as to specific utility in a given situ-
ation, although we can produce statistics on numbers of photo-
graphs produced and numbers of pages of surveillance notes,

It is clear that the FBI is an interested customer and they
have received from LIEMPTY a great many reports on American
callers at the Soviet Embassy, and valuable support to double
agent operations. :

ec. During a conversation on 8 December 1967, the
officer who heads the station's SB section told the branch
that. LIENPTY is basic and essential to all of his branch's
operational planning, that he "grabs the LIEMPTY material
first thing in the morning" and studies it for leads, evidence
of which Soviet officers have been in the Embassy ana which
ones have been away, who has used which car, who has been talk-
ing to whom or going out of the building with whom, etc. etc,

‘New additions to the Embassy staff can be tabbed as KGB or |

GRU by their associates, their activity patterns and the cars
they drive. (The I,S, men are often away from the Embassy,

: while the legitimate FSO's tend to spend more time in their

offices, The KGB, GRU and regular diplomatic groups seldom
cross lines but stay within their own tight groups.) When

SECRET

14-0000

“SECRET

G

-3-

“double agents are turned over from one case officer. to a new

one, known to them only in alias, we are often able, through
surveillance and photographs, to establish the true identity
of the new case officer, as was done in the case of AEGIMMICK

in the spring of 1967.

4. In assessing the security of the operation, the
station assumes that the Soviets realize that they are being

. watched, as was.evidenced by a Soviet officer's trying to

ahield-an FBI-directed walk-in from observation. There have

“been rumors that anyone centering the Soviet Embassy is photo-

graphed, but no allegations that the Americans are doing it
have come to our attention; the probable assumption is that
the Mexicans are doing this. A former source who lives in

the neighborhood was asked on several occasions what he knew |
about LIBMPTY/6, one of the safchousekeepers, and the Soviets
have said they think he is watching them. On the security of
the LICALLA safehouse there is a difference of opinion,
GERENDE, the outside case officer, thinks the Soviets are
aware that they are being observed from this post, but station
disagrees and produces good justification for its views, cit-
ing the fact that the above-mentioned FBI walk-in was not
shielded when led into the back garden which LICALLA overlooks.
We ‘have no cvidence that Soviet interest is any threat to the
operation; rather it may be assumed that they accept the sur-

veillance as a fact of life.
Sheet ts ibe Vv. Broe

Chief,
Western Hemisphere Division

SECRET


14-0000

5
j

REQUSST FOR PROJECT RENEWAL .

A atk natant RON Pelee Rate mamta, Secs ed

. |

. $

: PROJECT LIEMPTY CASE OFFICER Years Te zoe i
: . neen . |
| |

: STATION MEXICO CITY CHIEF OF uy zeand (wily —_

oe ar e & :

.
i i

,

F
‘ ; h
. 1

f

i .

|

£

| i

t

| :

|

i j

«

l |

| ,

oad New 67

: .

x arn So-e- 9/1
. ATES ~ 5 |
CSide pie att. «1/6 HMmA- 33 7TS |

Se arr 2k Aaya Teese _


14-0000

a,

CURRENT OBJECTIVES

oy _— fern

0 PROJECT piupry

REQUEST FOR RENEWAL,
e : . \ *

i

A. The overall objective of Project LIEMPTY, now in its tenth
year of existence, is to collect operational intormation on the
FJSTEAL installation, its personnel and visitors, as well as
related targets of opportunity through stationary/mobile photo-
graphic and physical surveillance mechanisms, Corollary
objectives which are to be fulfilled through use of the LIEMPTY
installations, mechanisns and. personnel are as follow:

.

1. To provide detailed oferational information pertaining
to the daily movements and activities of the FJSTEAL
personnel, particularly those individuals of intelligence
interest, as well as information on the FUSTEAL physical

plant and visitors to the premises.

2. To collect operational information on persons associated
with FJSTFAL personnel and on individuals known or suspected
to have connections with the FJSTEAL intelligence services
or other hostile groups which are inimical to the interests

of LNFORT.

3. To provide operational support, counter surveillance
and/or other protective services to WOFIRM personnel and
operations, as may be levied upon the Station or as may be

deemed necessary,

B, The above objectives are to be fulfilled through continued
maintenance and exploitation of the LIMITED, LILYRIC and LICALLA
basehouses, the LIENTRAP mobile unit, and the services of long-
time contract agent, Raymond H, GERENDE. These objectives are
in consonance with operational directives and Headquarters
requirements as received by Station Mexico City. ;

C. Throughout the Project year under review, Project LIEMPTY
continued to contribute directly and significantly to the fulfil-
lment of Station and Headquarters' requests and requirements for
coverage of various targets falling within the above cited frame-
work. During the project year Project LIEMPTY provided nearly
all of the operational photographs and physical surveillance
reports used in Mexico City Station's operations targeted against
the FJSTEAL installdtion and personnel, Specific examples of the
LIEMPTY Project's progress and contributions will be found in
Section 3 below (EFFECTIVENESS).


14-0000

CHANGES .

A. Operational - Since the institution of the changes described
in the previous renewal request, it has not been found neces~-
sary or desirable to make further mayor changes, The following
minor changes in operational technique have bcen made in an
effort to obtain continued improvement in the finished product;

1, LI=EMPTY-9's proven effectiveness as an observer (see
paragraph 3 A (3) below) has enabled us to institute a
system of special-coverage on specific FJSTEAL personnel
_of interest, or special coverage of specific time periods,

of interest. The purpose is to permit the Station to gain
greater insights into.the activities and personal assoc tations
of certain tndividuals, or in overall activities during a
certain time period, No crange in LIEMPTY-9's overall
‘working hours has been made; rather, flexibility has been

introduced.

2. Flexibility has also been introduced into the handling

of LIENTRAP, which is now vorking more closely with the
LIEMBRACE team in order to take greater advantage of targets
of opportunity, To this end, LIEMBRACE~1 has been placed

in direct contact with LIENTRAP, relieving Raymond H, GERENDE
of this responsibility and permitting GERENDE to devote time
to MHRAVEL activity (see sub-paragraph (3) below).

3. In September and October 1967 GERENDE was employed by
the Mexican MHRAVEL committee. This position gave him direct
access to FJSTEAL and other delegations of interest, and
“supplemented the Station's MHRAVEL program, It is expected
that GERENDE will obtain MHRAVEL employment.again in 1968,

B, Financial - LIEYPTY-4 and -1l1 were granted salary increases
effective 1 July 1967, Memoranda of ‘Oral Commitment were for-
warded to Headquarters in HMMA-32584 and HMMA-32585, 20 July
1967, There was no change in the salaries of the remaining

LIEMPTY agents,
C. Personnel «- None,

EFFECTIVENESS

Throughout the period under review, each operational component
of Project LIEMPTY contributed actively and concretely to the

‘fulfillment of the operational tasks levied on Station Mexico

City. High~lights of the accomplishments and the achievements
of each compenent are cited below:


14-0000

SCORETAARK ee

-3- Do ee

-A. Fixed Basehouses

1. LIMITED

poo Throughout the past project year the LIMITED installations
provided daily photographic Coverage and physical surveil-=

; lance of the main gate of the FJSTEAL installation. In

om addition, the LIMITED base Provided for a fixed radio

: dispatching station which was used to support the LIEMBRACE

i - + gurveillance team. Due to the stringent security measures
instituted in the immediate vicinity of the FJSTEAL instal- -
‘lation by local security forces, normal stake-outs by this
unilateral team are precluded. However, with the radio
dispatching support from the LIMITED radio base, which
allows the LIEMBRACE team to work from adjacent safe areas,
secure surveillance coverage of this target can be provided.
During the 12-month period from 1 November 1966 through
31 October 1967, the LIMITED base provided 1,834 frames of
operational photographs, Mm addition, the LIMITED base
provided over 2,500 pages of physical surveillance reports,

2. LILYRIC
eae : . During the project year under review, the LILYRIC installation
. provided extensive photographic and fixed visual surveillance

. of the front of the FJSTEAL installation. The LILYRIC base
’ provided the majority of the operational photographs produced
by the LIEMPTY project, During the 12-month period cited
in the LIMITED section above, the LILYRIC base provided
12,137 operational photographs and several thousand pages

; of physical surveillance reports covering the daily move-
: ments of all FJSTEAL officers.

3. LICALLA

During the above cited 12-nonth period, the LICALLA instal-
: lation provided photograph:c and physical surveillance
: coverage of the back of the FJSTEAL installation and its
garden and patio area, Th.S coverage provided 4,917 indi-
vidual photographs as wel]. 3S numerous surveillance and
yo! observation reports, It sould be noted that the LICALLA
«4 base allows Station Mexico City to observe the FJSTEAL
: : personnel during their off-duty and recreational hours.
tos The LICALLA installation heS become the most valuable of the
. of three, not only hecause of its unique vantage point but also
because of the perceptivenesS of LIEMPTY-9,. His surveil-
lance reports have frequently given us valuable insight
Co, - ‘into personal associations among the FJSTEAL personnel and
ho have enabled us to introduce greater flexibility and
‘ effectiveness into the entire LIEMPTY operation.


14-0000

wee fe oy ew

an erat aif
. Noite
: Cais

-4- | \

B. Summary of Fixed Basehouse Effectiveness

: The fixed LIEMPTY basehouses (LIMITED, LICALLA and LILYRIC)

i provided approximately 18,883 individual frames st oper-
ational photographs during the 12-month period of the past
project year, This photographic coverage, linked with the

i . . Physical surveillance reports prepared by each basehouse,
has proven to be a most reliable and viable tool for;

1, Following the daily comings and goings of.
FJSTEAL personnel and indigenous employees,

2. ‘Confirming the identities of FJSTEAL staffers
and their visitors (sore of whom are WOLADY citizens),
i

3. <Ascertaining and verifying the relative rank and
position as well as indicating the specific intelligence
service connection of various FJSTEAL officers,

4. Providing detailed reporting on the movement and
habit patterns of selected targets of special interest.

5. Providing physical facilities for the support of
various operational, technical and surveillance

operations,
C. The Mobile Photographic Unit

1, .Throughout the period under review, the LIENTRAP mobile
photographic support unit was regularly exploited and used

by Station Mexico City, not only on the FJSTEAL target, but
also for PBRUMEN snd Commurist Party operations as well as
the JMTIGER program, Over 2,000 operational photograpbs were
provided. In addition, the LIENTRAP personnel and unit

was used regularly to service and obtain various postal
accomodation boxes used by Mexico City, Headquarters and
other field stations,

D. Raymond AH. GERENDE - LIEMPTY Principal Agent

During the period under review, with the exception of short
vacation periods, Raymond H, GERENDE, continued in his role
as the Project LISMPTY principal agent. GERENDE operated

as the full-time cut-out to the LIEMPTY, LILYRIC and LICALLA
basehouses and bore the first echelon agent handling respon=
sibility for the related personnel, In addition, GERENDE


14-0000

6.

it

=

_ Lr saree Ens
& SLUT bobeatd &

&
=e

continued to bear the contact and handling responsibilities
of the LIENTRAP unit (until mid-August 1967 - see paragraph
: 2 A-(2) above) and for the operator of the LIEMPTY photo-
@raphic developing/procesSing laboratory, LIEMPTY-4.
GERENDE's overall operatioral assignment involved at least
12 clandestine meetings per week, in addition to his
meetings with the LIEMPTY Froject ease officer, It should
“also be noted that GERENDE made numerous and essential
‘contributions to the sensitive AMROD operation and assisted
the Station greatly with his detailed area knowledge in
many instances, .He its frecuently used to make independent
investigations and neighborhood checks. AS noted above,
he contributed significantly to the Station's MHRAVEL
program. Finally, he apprcached, developed and eventually
attempted to recruit an agent for use in PBRUMEN operations,

E. Overall Effectiveness

As outlined above, each incividual operational component

of the LIEMPTY Project contributed regularly and significantly

to the fulfillment of Station Mexico City's operational
program. Based on the continued excellent performance and
overall contributions of this project, the Station strongly
recommends that this project be continued during the forth-
coming project year as an essential element of the Station's
operational support apparatus,

PROBLEMS AND SECURITY

During the project year under review there were no known inci-
dents which adversely affected the security of Project LIEMPTY
or the related personnel.

LIAISON AND INTER-AGENCY COORDINATION

Not applicable to Project LIEMPTY,.

PLANS

A. As noted above, the technical and operational changes
made in the past year have been effective and have resulted
in a product which is as closely geared to operational
requirements as possible. While no major changes are
contemplated, every effort will be made to continue to
improve the product, including greater use of GERENDE as
an independent investigative asset, and as a spotter and
assessor of selected agent candidates. Such utilization
of GERENDE will be kept compartmented from other personnel
of the LIEMPTY project and will normally be handled by
GERENDE in operational alias,


14-0000

me erenie -~
. veval ‘ , oe
. ; - be oo
. ; . oo
“" «Ys The LIENTRAP vehicle has been replaced, and no major

changes in personnel or raterial are contemplated. Salaries
soe of LIEMPTY:personnel will be reviewed, and it is foreseen that
—_ the rising cost of living will compel us to recommend salary
increases for certain. of tle agents who have not received

raises in some time,

7. gosTg. re ,

As’ Past Project Year = : Project LIEMPTY was previously approved
for the period 1 Decenber 1966 through 30 November 1967 for the
amount of 45,000 U.S. currency, Station records indicate that
through 31 October 1967, Project LIEMPTY has expended 37,040 in

the field, It-is estimated that a total of 40,130 will be expended
-in the entire project year. Bi-weekly account ings with pertinent

receipts and/or certifications were submitted by Raymond H, GERENDE
to the Station finance orficer via the project case officer for all_
LIEMPTY Project expenditures made in the field. It is estimated

that approximately 5 hours of case officer and 10 hours of analyst
time is required each week to julfill the operational, administrative
and analytical requirements of this project. (This figure does not
include the 40 hour-week put in regularly by Raymond H. GERENDE).

B. During Project Year - It is requested that Project LIEMPTY be |
approved in the amount of 43,520 U.S. currency for the period 1 —
December 1967 through 30 November 1968 (this figure represents a ~
Slight decrease from the amount programmed for the previous project
year). While no large expenditures are anticipated for the replace-
ment of photographic equipment during the forthcoming period, an
increase in the rental of the various basehouses may be encountered
as well as the above-cited expectation ot salary increases. Of the
amount requested above, 26,205 dollars should be allowed for fiscal
year 1968 and 17,315 dollars for fiscal year 1969, A detailed break-
down of the project expenditure by category and by fiscal year follows;

SALARIES CINCLUDING CHRISTMAS BONUS) FY 68 FY 69

Raymond H, GERENDE (P/A)......+6$ 7,036

( \ LIEMPTY-4 (photo lab).seseeseers 2,600
. LIEMPTY-6 G@IMITED basehouse

a KOCPeDr) eoorencccccners 3,848
,* LIEMPTY-9 (LICALLA basehouse

kKkeepter) .esccccsesscee 4,160

il “LIEWTY-10 (LIENTRAP operator)... 4,576

Yn \LIEMPTY-11 (LIENTRAP operator)... 2,704

LIEMPTY-13 (Cut~out to LILYRIC). 1,664

“LIEMPTY-14 (LILYRIC basehouse :
Keeper) cacccccaccacce 1,872

\. LIEMPTY=27 (LILERIC operator)... 1,560
30020 $18,475 $11,645
Contingency for possible
Salary increasSeS.eresescesecesss 2,000 1,000 1,000
TOTALS. .cecseecee+ 6 Son, 000 31d, 475 gz; S45

t
. ‘ . 4

as

4

'

wee


14-00000

: VEHICLE MAINTENANCE

MV 2606 (GERENDE)..seeccsssesas $1,000
_ MV-2089- (LIENTRAP) .....e.ee00+. 1,000
AS2> $2,000 $1,165 $ 835

‘" REAL ESTATE (RENT, UTILITIXS)

LILYRIC. cococccccnceccccssecesse$3,200

i LIMITED, cacccccnccccccsesccccese 2,000 °

+ LICALLA ec ccccccccccccnvesesetns 1,800

: Photo Lab. sccacccccccessccescess 1,000
$8,000 $4,665 $3,335

; EQUIPMENT

a Maintenance and replacement of
: photographic equipment....cecsees $ 500 $ 300 — $ 200

OPERATIONAL EXPENSES

Purchase of film; rental of
‘ post office accomodation boxes;
reutal of vehicles; contingency

Fundecssecscecssesesscssesscess $1,000 $__600 $__400

TOTALS «oe eeeee ven see $43,520 $26,205 $17,315

Cc. As in the past, Raymond H, GERENDE will submit bi-weekly
accountings for all project expenditures with appropriate
receipts or certifications, There will be no requirerents for
foreign currency beyond the Station's capability to provide.

8, EMERGENCY CONDITIONS

A. In the event of civil disorders or the evolution of complete
enforced neutrality on the part of the host government, it is
now believed that regular operational contact could be maintained
with the majority of the active LIEMPTY agents via Raymond H,
GERENDE or in his absence, Oliver G. SCANTLING,.

B. Ia the most unlikely event of the establishment of a regime
openly hostile to LNFORT, limited contact could probably be
maintained with the majority of the active project agents,
However, under the circumstances described above, it is highly
probable that the activities of this project would be somewhat
curtailed,


14-0000

a re

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mene serene eremte ptbenun oe

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mee 1 an

\

C. Revised and up-dated emergency contact plans for use with
Raymond H, GERENDE and Oliver G. SCANTLING are on file in the
Station and at Headquarters (see HMMA-28333, dated 21 February

1966 and HMMA-28252, dated 9 February 1966),

Be ee ee eet


14-0000
'

CUSHNL ATION PROCLNG ACTON

Le |

DISPATCH [seewss [foe

Chief of ‘Sta! tion ’ }, Mexico City — ix poner IOENNG HOUIELO
| ey QUALIFIED DISK

ut rae .
~ . . ! CAM OSE INDE ING
x] a
Chief, WH Division : | acre
RAT ~~

C Renewal of LIBIPTY
TCT BROAD © THFETURES ;

This ie a reminder that LIEMPTY will be up for
renewal on 1 Decembor. Please try to let us have your

draft at least a month before that time.

(18,

Theresa H, BACHARDY —

Diatribution:
“r+ -2 «= COS, Mexico City

aa Ss o -G-?7 u/,
OSPATLN S¥MSOL AND NUMBER . palt .

HNMW~-15759 ! 1 Septenber 1967

ratte file NUMBER

CUSSION |

t Me
SECRET)" “| $0-6-74/1
TE SRATINE
OFE = OFFER, = THPIST wt,
WH} N. Perkins sas v (us 6954
RI
Chrono OHRE MCL OFFWLR S NAME
” <r _
RELEASING t = “e
OFFAE LEN bates POHMERSSENAILRE _
i of, > cane 4
ACA E | 27 | "iy. Fisher" Siler, ¢

O84 §3 yor enevious EoInION. “ Di § AT cH
MFG 1-66 ‘ U

1400000

ERAS ORTON PROF EDS ae ACNOTE

DISPATCH | EE

wD DE ss8G OF QUT

ORLY QUALIED OF x
Cam JUUGE UES

MICE OFIL ES

S LIEMPTY Project Renewal

ACTION REQUIRED REFERENCES

Reference: HMMA-30403

1. The LIEMPTY Project was renewed on 13 January
1967 for the period 1 December 1966 through 30 November
1967 for a total of $45,000, Of this, $29,020 is for
FY 1967 and $15,980 is for FY 1968.

2, At the Station's convenience, Headquarters
would appreciate receiving a sketch showing the exact
position of the LILYRIC and LIMITED Basehouses in
relation to the target building. We would also like
to have a description of LIXOUSINE's new building-~
how many floors, how many apartments on each floor, who
occupies the other apartments (or stores), and exactly
where the LILYRIC base is in the building.

3. You are requested to continue reporting any
unusual interest displayed by the target in the LIEMPTY
Basehouses,

Distribution:
Orig & 1 - COS, Mexico City

DISPATCH SYMER 450 BUMBER

HMMW- 15157

CASYFICATION! gs
4

T'yeS FILE NUMER
a 50-6-74/1

- OFFIGER ‘ TYPST &xT.
WH/1 C, Buste$-Videla nao 6954

RI
Chrono

OFFICERS sonpryae /.
Om Mn,

Ww. of Kaufman”?

DISPATCH

OFFICE FYMBOL GATE
C/WH/1 2

FORM

Tos" 53 uss previous sorron.

MPG 1-65

fe en en een ere Rent Re ce

14-0000

- SECRET

MEUM Toe

DDP/PG Fi-cl
Projects

a re +

) 5

> or ‘ ets
Ofvision “ i
WH . . ex is]

TR ere eee pe ce coreg enn at ae ee ene

COMMENT FOR SNTERNAL STAFF USe (Not to go forward to the Division)

COMMENTS AND RECOMMENDATIONS (Te #0 forward to the Division)

The CI Staff concurs in the renewal of this very
valuable Project. The Staff strongly urges the Station to
continue its close monitoring of Soviet interest in the
installation buildings and attempts to obtain information on
sensitive project pérsonalities. The Station should devise
necessary contingency plans of action to eliminate any
securjty hazards if it is determined that the Soviets are
intensifying such efforts and could be gatting “too close"to
the Project installations, personalities and activities.

Ce SENT Ory,

DATE G siés ba

nee tt nee nea tan renennen lh ey ere ere

REVIERING OFFICER 7
a a a te Lhep doe
oe 526 use eacvrous ceavirs SECRET eet i: ae {13.20.40}
awe ed |

spe sones


14.90000

i
! pres

-- ASQUEST FOR PROJECT NQIEWAL

PROgECT:___LIEMPTY, CASH OP-VICER Nines LP, ey

Cornelius Le PEHUVION

CHIEF oF starreyd//,(! ; “ILD
/ willerd G. CRTIS

STATION: MEXICO CITY

'

le Arg wlh tiMiand- 30463 BR Side trl fe Mian p~ SO4 OS :

14-0000

le

RSWEST PON ANSAAL

“> progegt LIcMETY

CURRENT. @RJSCTIVSS

A. The overall objective of Project LIEMPTY, now in its ninth year of ex
istence, is to collect: operational inforeation on the LESRICK installation,
its personnel sh! visitors, as Vell as releted tarsets cf opportunity _
throuch statiensry/mobile photographic and physical surveillance sechantsnas,
Corollary obtectives which are to be’ fulfilled through use of the LIENPTY

installations, wechanisas and personnel are as follow:

1. To provide detailed operational information pertsining to the
Gaily agoverents and activities of the LIERICK personnel, particularly
those iniividuals of intelligence interest, as well as inforaation

on the LDGRICK physical plant end visitors to the yreuises,

2. To sallect operational inforwation on persons associated with
LIMERISE personnel and on indivi.uals known or suspected to have
connections with the LIMANICK intellisence services or other hostile
sroups which are inimical to the interests of LNTSU.

3. To provide operational suppert, counter surveillence end/or other
protective services to WOFACT personnel and operations, as aay be
levied upon the Station or as asy be deemed necessary.

B. The abore chjectives are to be fulfilled throush continued asintenance
end exploitation of the LINITSD, LILYRIC ana LICAuLA basehouses, the
LUSTRAP aotile unit, and the services of long-tiae contract agent,
Raynond HW, GSRENDS, These objectives are in consonance with and represent
partial ®ilsibiaent of the following sections of the current Related
Mission Directive (MM) as eporoved for Station Mexico City: :

PRICRITY A
Section 1, subsection
Section 2, subsections b ke

PEICRITY B
Section 1, subsection a
Section 2, subsection a

@. Throughest the Project year under review, Project LIE&OVY continued to
contribute lirectly and sisnificantly to the 7ulfillwent of Station and
Fescquarters' requests ana requireaents for coverane of various targets
falling within the framevork of the cbove cited sections of the RND.

Dering the last 10 sonths Project MLSPTY provided the vast aajority of the
operational photosrephs (approxinstely 16,00¢) and physics] surveillance
reports (4,@0¢) used in Mexico City Station's operations tarsetted against

{


14-0000

2.

—. BIR

»

De

the LIMERICK installation and perscnnel. Specific exraples of the LISMPTY
Project's progress and contributions to the RND will be found in Section 3

\below (SFFECTIVENESS)._

MANGES,

,e

A. Operational - As noted in tha previous Request for-Project Renewal,
the foraer LINITXD property ves sold to LIXCUSDE, who as per formal acree-
ment with the Station, demolished the oli structure and cons:ructed a new
edifice, ‘Whihe it “ies. anttialiy contesplated to-placé the LIMITED -
(LIEMPTYs -b and -7) personnel in the new building and to retain the sane,
equal divigion of workload between LILYRIC anu LIMITED, 1+ was Later’
atcaued to acve the present LILYRIC basehouse personnel (LIEMPTYs-13, “1h,
-26 and -27) into the new base instead, along with the following ancillary

modifications:

An increase in the hours of both the photocrephic and physical surveillence
coverage provided from the new base by the LILYRIC operetors (cee0-1609
hours) during the weekdeys and to have the LIMITED base provide
photographic and physical surveillance coverase froa 1660-1630 hours

on weekdays and fro 0950-1300 hours on weexends. These changes were
dictated by the following considerations:

1. The new LIMOUSINE building offers a much better vaataze point
for both photographic and physical surveillance tinan does the
presert coaplex which houses the LILYRIC end LIMITSD bases.
Therafore, the Station felt that the personnel occupying this
new base should be those possessing the highest technical skills
and also those able to provide the zost thorough ani coaplete
coverase, Since the LIMITED base now has only one trained
operator while the LILYRIC basehouse hes thvee, the LILYRIC group
and a revision of working hours was indicate.

@. Beasuse £6 was epparent that the coverage of the LIMERICK
larctallation would be a long-range and continuing requireaent,
the Stetion desired to steff the new bese with personnel of long~
range potential, LIEMPTY-6, now alacst €0 years cl1, does not
possess this potential; however, the LILYRIC agent complex
happily coxbines experienced persontel with youthful ascents.

3. Hirally, the social and financiel status of the LILWRic
personnel is auch more compatible and consistent with tne en-
vilronzent of the nev building than is that of the LIMITAD fsetly.

The above-cite2 revised work schedule wes inittated in July 1966 ani
the actual sovesent of the LILYAlcs into the new base began in lste
Septeaber 1965,


14-0000

- with FAA-26,136,

3. Finsncisl - Afters istailed review of the ‘then-extsting LIBERTY agent

salary structure, ssiectai agents (LLG@rYs -6, ~-9, -10, ant -11) were

granted selary increases effective] Janusry 1966." Formal notification

and revisel aexoranca ol oral cosaitaent were forwanied to Headquarters
igte? 25 Jamnry 196€. There’ Was RO © ehange-in the Salaries

of the @ redaining LISCTY agentSe . .

C. Personnél

1. During the Protest yeer unter review, LUQPTY-6, -9, <13, -1h, -26 end

=
- 287 were afforied their y tnitied ASL exaainetions, all with satisfactory

results.

2. LISNPTY$26 was sventei en OA effective 29 Novesber 1965 for use as
a cut-out to the LIZTIS tacchouse (MON-MAL77, dated 9 December 1965),
LIEDTY-25 has been soatvely used.during the past Project year for the
above-stated purposes. -

3, LIEMPTY-27 was srected an 0A on 27 July 1966 for use as a part-tise
LILYRIC besehouse operetor (2001-14757, dated 1 August 1066), ‘While
LIPTY-27's heavy waiversity nchedule has thus far precludel his reguler
uoe by the Station, ic is anticlpated that subgect will be regularly
enployead after the ent of the present school tern.

EPPSCTIVEN-SS,

Throughout the periol uader review, each operationsl cosponent of Project
LISMPTY contributes setively and concretely to the Pulfillaeat of the
operational tasks 12 siicn Station Mexico City by the MD and other
directives, High-.

S33 of the accomplishments and the achievements of
each component are oi

a below:
A. Pixed Basehousss

1. LIMITED

Throughout the % Project year (with the ehenge in working hours
noted in psrasrazh 2 2bove), the LIMITED installation provided daily
photographic covrerec> ani physical survelllance of the nain gate of
the LIUSRICK iastetistion, In eddition, the LIMITED bese provides

for a fixed ralic lissetening station which was usel continually to
sugport the LIGA surveillance tesa. Due to the stringent
security asasuves instituted in the lumediate vicinity of the LIMERICK
installetion by tres2 security forces, noraal steke-outs by this
unilateral teem sre grecluce?d. However, with the radio dispetching
support froa the LIMDZED redio tese, which allows the LIMGRACE teaa to
work froa edjscent safe areas, secure surveillance coverage of this .

r

ve atta


14-0000
no

ey

whe
. Tee,
: ae target can de provided. During tha 9-#onth period Srwa 1 Noveaber
L : 1965 throws: 3¢ July 1006, the LIMITED base orovlie! 3,775 fraaes

“ of operationsi photosrsphg. In adiltion, the LINTZD bese provided
- over 1,068 pages of physical surveillance reports.

2, LELYATG

. During the -Preject year under review, the LILYRIC installation
provided extensive photasraphic and fixed visusl surveillance of the
front of the LIMERICK installation, The LILYRIC dase act only pro
vided the metority of the operational photesraphs produced by the LIQGTY
project,. bt also provided the aost detaile! ohysical survetLlance

: . : reports. - During the 9-nonth period cited in the LINITSD section above,

: , the LILYRIC bese provided over 6,500 operational photographs andi 3, e0e
pages of prysical surveillance reports covering the daily soveseats of

ali LINSRICK afcicers.

3. LICALLA

During the. sto ve cited Q-aonth period, the LICALLA installation provided
mi physical surveillance coverase of the back of the

photosraphic
LIMERICK instellation end its garden and vetio ares. This coverage

provided orer 3,690 {ndividual photographs ss well as nuaerous sum
veillance ani observation reports. It should be noted that the
LICALLA base allows Station Mexico City te observe the LINERICK
personnel during their off-duty and recreational hours.

B. Sussarr of Bixed Nasehouse if fectivensss

The fixe2 LISPTIY bacchouses (LIATED, LIGALLA and LILYRIC) provided
epproxiaately 17,000 iniividuel frames of operational photographs
first Seagonth perfod of the pest project year. ‘Within the

during the firs
last year, this photosrephic coverage Linkal vith the physical
surveillance reports prepared by each basshouse, has proven to be a

most reliable aad viable tocl fors
1. Followias the deily comings and scings of LIMERICK | perse onnel
ani incisenous enaployees.
2, ComNivaing the identities ‘of LIMGRIKX staffers anal their
visitors (sone of whoa are WOLADY citizens),

3, Acsrtsining ani verifying the relative rank ani resition

a3 well as indicating the specific intelligence service comnection
of various LIMERICK officers.

h, Providing detailed reperting on tre wovesent and habit patterns
of selects targets of special interest,

1
5. Provilins physical facilities for the support of various op-
erationsl, tecunicel an? surveillance cyerntions.


14-0000

e

C. The Kchile Photosraphtie Unite

1. Throughout the pertod! under raview, the LICNTRAP Mobile photozrephie/
support unit was recularly expleited aad used by Station Nexicc City.
This. unit provided over .1,00¢¢ individual photographs ani was used in
support of Station operations anl activities, Of particular Value to
Station Mexico City and the JNTIGER progras were nunsrous photosraphs

of local and exile! Coawnist leaders provided by LL:NEMAP. In addition,
the LESNTRAP personnel and unit was used regularly to service and :
obtain various postal accossodation boxes used by Nexico City, Nead-

quarters and other field station oo

D. Raysond 1, GERNDE - LTMETY Principal

During the pertod under review, with the exception of short vacation
periods, Reyrtond M. GEREND:, continued in hio role as the Project
LIEPTY principal agent, GEREMDE operated as the full-tise cut-out
to the LISNOTY, LILYRIC and LICALLA basehouses and bore the first

. echelon agent handling responsibility for the ralated personnel, In
addition, GERENDS coatinued to pear the contact aml handling rane
ponsibilities of the LIEMMAP wilt and for the opsrator o? the LIEMPTY
photographic developing/processing laboretory, LIEMOTY-4, GSRENDES's
overall operationsl assignnent involved at least 14 clandestine aeetings
per week, in adlition to his meetings with the LUMPTY Project case
officer. It should also bs noted that GuRGIDs sade numerous ani essen-
tial contributions to the nensibive AMIOD operction and assisted the
Station rreatly with hin detailed srea knowledze in many instances,

E. Cveral. Effectiveness

As outlined above, each individual opersatioaal coaponent of the LIEKPIY
Project contritnited regularly and sicnificantly to the fulfilinent of
Station Mexico City's operational prozina. Based on the continued
excellent perforsance and overall contributions of this project, the
Station stronzly recommends that this project be continued during the
forthcosing project year as an essential element of the Station's

operational support apparatus, ,

PROMLING AND SCURITY.

During the Project year unter review there vere no know incidents which
adversely affected the security of Project LIENPYY or the related personnel,
The only significant problea enccunteral in the operation and adainistration
of this project stenual froa the physicel sove of the LILYRIC personnel to
the new base in the LIMOQUSIN® buftlding. Muserous delays arising froa the
faulty perforasnce of the local contractors and construction crews hempered
a timely relocation of this base, However, it is anticipated that the new
LILYRIC base will be in full operation by the end of Uctober 1966.


14-0000

“3

wie

LEAISCN AND INTAR-AGRSY cect Rurign.

Not applicable to Profect LIGNMTY. . .

PLANS.

A. As outlined in saracragh 6 of the Ststion's previous request for the
renewal of Project LIMIT, a progrea Yao undertaken to reaquip-anl aolernize
the LIEMPTY photosraphic processing base. During the past year, a signi-
‘icant portion of tue equipsent used in the developing and processing
laboratory was replaced. As a result of this progras, negatives and
photographic prints of ach higher quality are now bain; proluced.
Consequently, only minor chanjes in the operation of the photographie
laboratory and its equipssat are conteaplated cor the ensuing period.

3. The present plysies) comlition, aileage ani frequent use of the
LERITAAP unit dictates the Luustinte replacement of this unit. Station
Mexico Clty has receives Xsadquarters approval for the replacesent of this ©

-yehicla,

C. Cther then noteat above, Kexteo City plens no slunttleant operational,
adsinistrative or personnel changes, since it is genernlly felt that this

Project Is now operating at its optimus sise ent ta a highly s eatiaZactory
wmsnner, After 1 Januery 196 or, the Station wlll review the existin: LIEMPTY
personnel salary schecule and consider possible valser, again oan sel ective
basis or specifically Keyed to the visting cost of Liviace

A. Past Prafect Yanr = Project DITMPIY was pravlously approved for the
period 1 Deceaver 1965 through 20 Moveabsr 1966 for the amount of 12,50
U.S. currency. Strtica recormls indicate that thus fer, Profect LLEILY
has expends? 3¢, 808,13 in the flell. It is eatLastet that approxiaately
1,506 dollars has been exvenmled by Headquarters, priactpally in the
acquisition of new eguipaent for the LIE TTY photazraphic laboratory.
Bi-weekly accountins 3 owith pertinent receipts and/or certifications were
subaltted by Harmon f, GRIDS to the Station Cinance officer vta the
Project case offices for all LIEMPLY Project expenditures andi¢ in the rield.
It {5 estinated that approximately 12 hours of case offleer ant 5 hours of
analyst tine Ls requirel each veek to fulfill the operationsl, adainistrative
ond analytical requiresents of tins Project Gnis Tisure does not include
the he hour-wWeek put in regularly oy Rayaoad EK,

“Gaps ).

DIY he approved
er 1966
increase over

B. Ensuirng Profest Year - It is requested taat Profect LIS

in the esount of 4S, cea iu. S. currency for the period 1 Decen>
throuch 39 Noverder "yoke his flmure represents only a slight
the asount proprearykze2 for ‘the previous Project yer), While no larse ex-
penditures are anticinete: for the replecesent of photosraphio equipment
during the lortheorins perioz, ex increase in the rental of the various hase-
houses will be encowntere! as vell as the nbove-cited replscesent of the


wae

Dad ote re

~

LIENTRAP unit. €f the asohat requested above, 27,525 dollars should be._
sllowed for fiscal year 1967 and 15,9e0-Aollare for fiscal year 1966.
deteiled breakdown of the Project expenditure by catogzory and by fiscal year

follows:

SALARIES (INCLUDING CMRISTMAS BONUS)

Raynona M. GERENDS (P/A) $ 7,000
2,600
4,908

4 ,oce

LLI2PTY-4 (photo lab)
LIENPTY-6 (LIMITED basehouse-
keeper)

LIEMPTY-9 (LICALLA basehouse
keeper)

LIEMPTY-19 (LIEVINAP operator)

LIZOTY-11 (LIZNTRAP operator)

LIDMITY-AS (Cut-out to LILynte)

LIEMOTY-13 (LILYNIC basehousa-
keeper)

LIEMPLY-27 (LILYRIC operator)

¥o,90¢

VENICLE MAINTENANCE

MV 2606 arte
MV 2279 (LIENERAP unit replace)

Te aco
2 5,90C

REAL ESTATS (RENT, UTILITINS).

LIMITED
LILYRIC
LICALLA
Photo Lab

EQUIPMENT
Maintenance and replacement
of photographic equipnest

th

CPERATIONAL EXPHNSxS

Purchase of file; rentel of
PO accommodation boxes; rental
of vehicles; contingency fund

TOTAL 355,669

4, hoo
2,606
2,200
2,206

2,000

3,006
1,860
1,560
1,69

$7,600

Ge.

500

B L,ece

A

+

pL1,75%

$3,176

14-0000

FON teed om a ttlR cay

Gtt H/ AMM An~sover

i
C. As in the past, Raymond F. GERSDI will aubalt bi-veesily accountings
for all Project expenditures with appropriate receipts cor certifications.
Tnere will be no require@ents for fovelen currency dey ond the Station's

capability to provide,

BNERGHNCY CONDITIONS. vt

A. In the event of civil disoriers or the evolution of couplete or
enforced neutrality on the pert of the host government, it 1s now believed
that regular operational contact could be maintained with the majority of
tue active LIANPTY agents via Raymond FE. GERENDS or in his absence, @liver

G,. SCANTLING.

B. In the sost unlikely event of the establishaent of a regiae “openly
hostile to LNFeitr, liaite?d contact could probably be anintained with the
aajority of the ective Project scents. However, under the clreuastances
described above, it is highly probable that tha lactivities of this Project

would be sonawhat curtailed,

S. Revised and up-datel saersency contacl plans for use With Rayroad Ae
GERENDS and liver @, SUANTLING sare on CLile in the Station and at
Headquarters (sea HMNA-20335, sia’ Cl February 1966 and EMMA-29252,

dated 9 February 1966)

S0-b - 49/7


FEQLESSING ACTION

Wate AOE MOTT

SATCH Losses:

= of Station, Mexico City mo exocuind BEQUIEE
Mey ORLY QUALIFIED DES
/ CAR wed RODIN
; Acting Chief, WH Diviaion pectoris
Y v . .
) LIEMPTY Project Renewal :

/ ON REQUIRED » RUFLRONCED
The LIEMPTY Project forwarded in HMMA-27569 expirea on 30
November 1966. The renewal request should be forwarded to

Headquarters by 1 November. : .

El@ie I, SCALETTY

“
7)

Distribution:
Orig & 1 ~ COS, Mexico City

So-a - 04, /
5 ser /

DATE

CASPATCH SYMENML AND NUMBER

IDDW-~ 14856 1 September 1966
> FILE MUNG

1
RM 59.6-74/1

CROSS REFERENCE TO

|
- | éDampry Ct
|

CRASDIFICATION merce

CAPE st Roe

AC/WH/1

| J. ¥iSher 72%,

4 2.
™ “| NESPATCH

jOrm
1663 53 USE PREVIOUS EDIT ote

.

een ae a eee es he das ONL pate’ nsatene

a ee

14-0000 y

oH

ANTES Exe

‘ _4t Station, Hexico "a's. NIR = a

, : . oma) QuEae? 2ES8

On UNE BOO
0S

REF: HMMA 27569, 2 , November 1965

1. The LIEMPTY Project was approved on 11 February 1966
for the period 1 December 1965 through 30 November 1966 for a
' total of $41, 500; $25,520 for FY 1966 and $15,980 for FY 1967.
2. There were no changes pade in the Station's request-——___---

for renewal, and no recommendations were pade by the

coordinating and approving authorities.

Risie I. SCALETTI

Distribution:
0&1 - COS, Mexico City

17 February 1966

DISPATCH SYMBOL ANO NUMBER

cs coz i
HAMW 14343 if i

CLASSIFICATION i QS FILE NUBEES

| SECRET | 50-6-74/1

OPCS © OFFICES ~ TwAST . ts06 _|
WH/1, Jpustos-Vi dela:

eats SS NAME

RI
Chrono ‘

CFEOR SYR

£08
Hoe §3° use enevious Epinions

jane rmnerenaresen tit ANAC ATEE .
weer nnement memes nineteen tie aimmten Maan =e

ce ie reer reem Snteneeet
ven teams re | enamine cee anna .

NOHOCESSING ACTION

WARKIO FOR IRDOLING

DISPATCH

Chief, <1 Division

{xo soca stqunen
, i OMY QUALIFICD OfSa

. : . CAN NUDGE INDEX
From — ;
a: rf
we

Chie? of Station, Mexico CL miceoreun

LU2OTY Projeet Renewsl Request
ACTION REQUIRED - REFERENCES
a 4

Aetion Required! See paresraph 2.

1.. Station Mexico City's Project LIT? expires on 59 Noves ber 1Q6",
Forwarded herewith ani under Be eeeye cover in split transmission is the .
Request for Renewal of Project LIUOTY,

2. It ts requeste? that Project LITOTY be renewed for the period

L December 1965 through 30 November 1964 In tha anonmt or SWl,s00. Ce H
: this total, 725,929 should be ellotied for FY 1OC6 and 315, Fae for PY LOBT:

- Qa wet ey BS bee
ror
Villerd ¢. Zuetis

Attachment ! , RG. flay - Ut
Left hand stae hw
Fight henl side we se Co. Note: tec: voy ite
Pease gooriiuate
Detribasion: Af approyrlatas

Gy a/uep wiatt hi & a. ss ce

es £5 coy

CROSS REFERENCE TO | DISPATCH SYMBOL AND NUMBER

6

50-E-7h 5

14.90000

FIQUEST FOR RENGIAL
PROJROT LI PTY

A) ‘The overall obsective of Project LIZMTY, now in its eichth year of ex-
istence, 1a to collect cperational information on the LO-RICK installation
end personnel, as well as related tarcets of opportunity, throush dtationary
end mobile photographic eni physical surveillance mechenisns, Corollary
objectives which ere to te fulfilled through the use of the LIG.APTY instal-
lations and personnel are as follow? ;

1) To provide operstionsl information pertaining to the dally activities
end movements of the LIEMICK personnel, perticularly those individuals
of intelligence intarest, as well as information on the LI-ETICK physical

ane

facilities end visitors to the premises,

2) To collect operstioneal inforaation on persons associated with LOVERICK
end on inlividuesis kmown or suspected to heve connections with opposition
intelligence services or other hostile groups which are inimical to the

interests of CoYaS, :
3) To provide operstional support, countersurveillance, and other pro-
tective cervices to Stetion personnel and operetions as may be deemed

necessary. ,

B) The above objectives ar2 to be fulfilled through the continue: exploitation
et the LIWITsv, LILYNIC ani DICALNA basehouses, the LIGVWIRAP mobile unit, and
the services of long-time contract agent, Naymond . G’REDE, These objectives
ere in consonance with eni represent partial fulfillment of the following
sections of the currem Releted Mission Directive (RMD) as approved for Mexico

city Station:
TTICRITY A
Seetion 2, subsection bh.
PRIONTTY B

Section 1, subsection a.

Section 2, subsection a.
2) Throughout the protect reer unler review, Project LIS TTY continued to
zavribute directly eni simiticantly to the Nilfillaent of the Ltation's and
Neadquarters' requests ani raguirements for covereze of various targets felling,
thin the ?ramewerk of the etove cital objectives of the 13D, Specific

BIN

wanyles of the LIAITY

Feaxul In Section 3., 5


14-00000,

2. CHANG

, A) Administrstive -- As noted in the Teculariy subaittel LIOTY prosress

" reports snd ee previous Request for Aencwel oF Sewyect LITIUY (Section VI,
‘ subsection 2) during the past two years iS ned become otvions that many of
: the operate. wmal susiimmints levied on CMiver 3. QUMLING (covered by Frofect

. LIL TPY Surtne | six tonths of tha neat. protest ress), vitle campletely within

: the realm of the ND, ware frlling outside tha preger scopa of Yrofect LIGNPLY;
; consequently, a new Project was prepared b> the tation onl approved by liead-
quarters to cover MURNiN's rolationsht? with ani the support of SCANTLIN,
SCANTLIG was therafore removed fron the sesis of -pogest LEEMMEY on 1 May LOES

and integrated into the new close suppers Dralect LEVTOR

R) Operation:l - Ag noted in tho previous Request for Troject Renewal, all

: operational retivity was suspended try late Sestester 18h ub the LINTPLD base-
‘ house keem:se af the potential s sound se P ran Sestions stemming froa the overt
pubdliention of a LOUTED shotogreaph im ut fe Narre: Jonmission Regort. . The
Stetion subsagveatly acquire. an pparitnen in the frmadiate vieinity of the
venue su keepers inte w rts tempo-

; LIMERICN inst tailation and moved the To tesehous
Aer a prudent cooline-ort Perial, all LUAITED operational
saphic, phyaleal sury eillance, ani radio dispatehing) wore

rary Locentior
activities tahoe
wsmimy LOS. During the interin
the former

re-initinted fre: the new location inl carly

pertol, and as a recult of separate enre spomiense with Headquarter
. LIMITED property was cold to LIOUCINE, who as per Toranl agreement with &

Stetion, Jemalished the old stricture “| San constriction of a new editice,

and bes
Included in this forual agreement with LIOUSDS is the proviso that one floor
of the new Milllin: vill be reserved f

ov the tle use of Station iexico City

Upon completion of tha new structure, ; the LodrTar personnel ant operational
activity will be securely trans Cerreat froa the tecporary apartrent to the new,

more ideally locates LIOUL DE bulldi ps.
he thenexisting LISUTY asent salary

C) Finance = AMer a detaller revi a the

atrneture, 2 selestod acents (LIMOTY Lins — wil, and LIEMPry-14) were

eranted seals , inere ec offeativa 1 é ate amy ISS, (Formal notifiention and the
were forvamded to Herdquarters

orandist of oral ¢
with IM. TAaneosS, intel L June 19 65) Tn n adiition, ss per the Yealquarters pre~

pared contract =: dnent, Raymond 11, }@.ReNQo wes grantal a salary inerease
ffeebive 1 Tals 145, There ves no fhanse in the salaries of the eight remain-
S active LIGIIY agents,’

4
D) Personnel - LIOTY-26 wasi ‘qrantel s POL on LX October 1965 for use as a

cut-out to the LIYRIC tasenouse, Ont IT inforestion is teaing ecmpiled and will
be submitted in the near future. LIGDEY-S wes actively used after recaipt of
the POA, .

9

2 I vw rate
oe IEPLO? srorss) . ' 1

iach operstioral coriponent of Project

HLS

Throughout the rerfod under review,
LIMPIY contrivute? setively to the f

SPS OLS

pLTths
roD emi

“achievenents o.

an Aha

progran levied on the station bh
liighlishts of “ate eeconglishments a

: seen


14.90000

- Threashout the Fast Project. 3 yonr, with tse exeeptlon noted fn

Th at veve, the Lusrred inststistion provifled dally phate
coverase and phystenl surveillance of the min osts of the LIE HICK Listal-
: lation during the afternoon anl early oveing tosss. fuurtngy the morning

: hours, the LECITEO tasehouse Neopers prepare? t>> srpevritton surveillance

reports and photograytite loge coverin; the previccs darts activitics), In

ablistons the LIMITED installation providel a Simei railo dispatch base,
isad regularly to support the LIUGUPAC. aurveilisnes tean. Lecause of the

thot seeurtty measures instituted hr the local sosurit: ferees tn the

imiediate vicinity of the LILNRICH inotollatiocn, sormel stakeouts ty this
unilatural team are prechuled. Nowever, with the support of the LIMIYED

radio base, which enn dispateh the tean from ac’soent saforars ac, secure

: and effective ourvellleree soverace of this tarocct can te provided, During

‘ the tenenonth pertod fren lL NovemLer 19% theo 2 Ms waist 1975, the

. LIMITIO base provided 150 volls of 35mn operating stil photouraphs, which

provided tha tation with approximately 2,970

tush frances, In -
addition, the LINT@S) base provided bi-weekly py survalllance muamary
rauports,.

BD
parasraph 2, cectlon

3) LER - The LILYRIC installation algo provises sive pholo rapife and
fixed vieuol gurvatllanees of the Cront of the LI LAIIN ingbelletion thre

ont the parkLol under revi tM, during the morntos s eerky aflerngon hours,
with eventila being spent in the preparation of Sen ourvelllarce reports
. and photosrapnie legs. ring the ten-month periat Crea l Uovenber 19Gh
Shrouch 30 Anouat 1eSh5, tho LILYRIC hesaiouse eoeridel 5,060 intivitiel]
frases (204 rolla) of Jim operational photocrsss. In addition, the LILYRIC
ia s.rvelllance reports

basehouse keoper » provide? 1,060 paces of pursisal
o*tleers,

covering the daily movements of the principal i=.
. G) LICsLua - During the aveve-noted ten-nonth pertai, the LICAULA inst aliet fon
provided pl ior, aphis ant physical surveillance: eocerace of the hack a

tie LOGTICK tistallatior, the varlen aul the yarts nvca, Thies coverage
produced 13 volla of 3irn Sllm, whieh produces +,27% indlviduel photovraphs

yn.
‘ - es well as hewoekly physteal sur- ro eee Susans In atlition, varlous
Fea aquartars specialists made nighev-time entris

nto the LICALLA hasehouse
or on-site clandestine surveys in . support ola “yobebial seonitive

technical vperavion.

SUMUARY Of PIDGIN BASITINSE LEPIORIYINIIS

The fixed LITOWY bascheuses (LIMITID, LILYRIc, LID) thus produced over
22,090 inlividual Trenes ef operational photo raps cumeaonur period within
the Isst year, Whis coverase Michel with the relnc ls out veLliance reports
prepered Dy each beasuheuse tas proven to he a vost 22 and wool for:


14-0000

.
ais

followin, thea daily sovemonte of LE Titer personnel;
providiag aul contin din; tha dienttties of LITRICN sta*era aid
thety visiters (sose of whom were PITAT Irs);

verifying the relative rank ani poaliion a3 well aS
tntellisence service connection of various LDIIIICA ¢

ate sprcific
ecticerss

‘provided detailed reporting; on the movement patterns of sclected

tarsets of spectal interest; and

providing physical Sseilitiea far the support oa* various technical

oil surve.lla.ce tean operations.

yan Lave) :

sank

LI <4 the perdod unisr review, tle SHETAD aoblle
Unis Was beavis use | and oaplolts) ty otation Mexieo cite, This
snlt provided 1,79 individual yhetocr ays af various terrots of?

operational interes. to Muxico cit, Stesfon, parcioclarl; loess],
sons well as varin. alot

3

Sommmnist leaders ant ivstallevioen

extles now res kuin, fa Mexteo ot
personnel resulerly servicol approxive 2
dution hoxas ueel operalionnlly Ny westea City, sca.

ether stabdous,

amt

wpeeLfieslly, the LIAWHAP units

t

>

provided and serviced necumnovablon voxes fer the sausitive Acco

operalion;

provided photo wrap: ite casing coverage o7 an ombassy ef interest to

Kuvuni/) for use in o operational plamitnc3

provided up-te- late pholos of individuals ani an inst

With the Spanish Teveblicen (Loyeltsts) group tu lexi
sovidet fdentitientioas, locations, sid cuntects oF

maa exile communists iu suppor’ of reeraitrens/ponet

Aireeted aveinst the Partido Comunista Mexicane, the

Soctaliste, ani verlous exile comiunist leaders,

tion Linked

eo.
SEIU C. SOueGEhg - guring the six-tonth period in
ered Thy Ui

afar

e LISUEY Trofect (sea paracrep: 2, seetic

Oliver G. CCAILLING contributed heevily to the Aillilicent ‘
WD. Speci*ically, SCAILILGs servel as th termate Station
eat

e
contact toe LIIGA-1, the sincletos agent in a sensitive ev
productive LAULICLE operation; preper2ad mamerous pletailes casing
revorts three of wiich were in support o° KUTU onal prosrams;
eonductel sevarel pretext investinetions; suc coruited and
haniles an agent with access to the Pr _resultes in
two technical penetrations (LIMoMAucs} of that tnlistion;
male essentinl contrivnitions to the NOD cparn
translations and phy aical les-work; and haniles
durin; the absence of the reauar LLOSTY Prineivel |
GLALNDE, :


14-0000

wae

am ke a patie

he

é.

P) EAEDED I. 2beDu - During the portod unter review, with the cxecpsion

of short vecotion portols, G2uzDE continue. fi hls rule ag the
LIA OT’ spincipal “Lert. Wty ageliamient .c:. S regvlar -ecbiacs
with the LEILVNIc, LIeflat, ai LOUD tase! x1s2 keepers for eutorte
te these tases)3 reader contaet ulth the operators of the LIann?
nohile photo walt; reguby tehvact wlth the LILOL! protosrap ic -

s Aaveloping anc processlig beta; and momaroun cpcratlonel tasks in
support ef the 225.9) operation, ‘peck ficalls, this effort involved
eh Ivast twelve clentestinn tient or Case OCficer acclina per week, th
first vekcloa finonclal acectintabllity for the expenditure of 735,000
per anus, in aldition to varfucs cover-job duties. .

a

SUR’ OP EOPRCTIV.ANSS :

As outlined above, ere’: indivivuel oporationnl component of the LIMIT!
profect contributed st dfleantly coed rerdlerty to the Mibtillment of the over-
all operational protren levied on tia Ctatton by the MD at other chreetives.
Tase€ on the Tine performance aud overtly contrilurvtions of t*in profect, the
Station conclades thet thio operelicon dy accential to the %:1Tillment of the
WD enl shoull *e continued durtog tae fortnecening voor.

DLOTU eS ALD SSOUR TL

The only significants operatioreboeurtty provleas wich confronted the LISDYY-.
profgect during the perLod under review, were thone Wiel eleaned directly or
inifwectly Croa-the overt mleese of the elanlestine LIMITED photoyrephs
published in the Varren Gonalesion Report, Yhe preetes decece oceaslored
locally ty the public disclosure of ¢:.16 clandestinel:: acquired L:.foraation
still cannot be ucasured, ‘llowever, ting-consumin: persoiic] moves, with tie
atternlant loss of covernce anl atiitions, sesh as well as otbemrise unnecessary
expenditures of Ubation time ami effort yore required it this incident. (See
perasraph IV of the 19*) LIRDuY Frofect Renewal Hequest lor details), Cther
than the avove ctfalr, there have heen no operational, mitiniatrative, or
persennel problens which tha station e141 not readily and seenrely resolve,

3

TAND TLV RAGIUCY COORD STON

LLL

Not eoplicnable to Drofect LIILTY :

t
SLAMS . co

A) 2s further implementation of a progran initiated durin: the latter portion
of the past project year, Mexico Cli: ctation will eontinie to stve increased
empineis to improving the quallty om the photo raphie proiset Crom the
LIGIGY vaschouses. “hile no comtonitant reduction in the quantbtr of yhoto-
ceapks ip anticipeted, tle Project Unse OffLeer, with the assistance of tks
local KURIC? representative will continue to emphasis the quality rather then
the number of photocraphs, An anelilem obfeetive of tris prozrna is to
replees o simificait portion o7 +t} a

equipment now used Lr the TINY
developing; and processing lah. of this equipment is over eight years 11


14-0000

eid no lonser lenis itseult to thu proluctt his} aah te nesrtives or
phetesrapte prints. The total cost oF this oa: weap sot repleccce:.t prorran
ie not asyedic3 to e: ’ nd suftietent Anda Neve’ heen tnelavic? in
tha cost section a7 tila renewal request,

R)

Osher than note. gvove, iientco City Mallon plas no other sisntficant
‘] 2 .
operetional, giainigtrative or perssuiel changes, sinee i. la sonerally

wigtra
felt thal this profcet La row operasing at its opsdaun sizo an ina
completely savisfastory manner. Actor 1 Jeavary; 1OFf the Slation will

rovlew the-existing LIILYY salary schelute and coasider possible raiscs,

again on a selective vrais,

Te COSTS

4)

3)

| ummm rem mes Of this azount, 229,520 sh:

Yast Project Year - Station recoris iniicasel that Project LIZITY expended,
330,549.99 durins the ten-month perlod fron 1 December 1964 throw
30 Septeaber SS", ALeweelily eccountines wit st pertinent receipts ; and/or

certifications were suimaitte’ by GLUINDE ant SCANTLING to the Station Tinanca

officer via the progect Case Clfiecr for all Mirimyy Projeet oupemiLtures.
It is estimated that approximately Siftcen hours of Cace Officer anl five
hours of analyst tla to required eseh week to TULCL1L the operational,
alninistrative anc analytical requirements of tits project,

s

Brguing Project Year - It is requested tlat Sroject LISWTY he approve:
the acount of wild 3X for the period L Decent or LCG through 30 Noveaber 1946,
(a te project was previously procramted for .30,G00;

el be
allotted for Fy 1845 and /15,0F0 for PY 10S7. A detailed breakdown of
project expen tare s by catezory and by fiscal year follows:


14-0000

t

pons)

BALARLES (INCLUDING CHRIGTUAS bows

Narmont #, GoRuNDs (P/A) “t,
LEMeT Ah (photo lab) 2,600,

LEIIEY-5 (photo leb assistant) 1,000
LuGPry-6 (LIITVED baschouse- 3900

keoper) .
LUGUTY-9 (LICALLA basehouse 1000
keoper)

DOI y-10 (urea -P operator) 4,400

LIOLv-11 (LIGWRAP operetor) 2, ”C00
LIST " {out ore to LILYRIC) 2, 200
LIMGTT-15 (LILYRIC Raschouse 2 *200

keeper) :
“29,900 A OO
VISTICLE MAINDEVANCE

LY 2606 (eam)

MV 20°79 (LILNTRAP unit)
: 72 O0G wh LG

REAL ESEAGS (RET, ULILITLes)

LIEIuD (to Include moving costs)3,009

LIne 1,°
LICALLA 1,°0
VOLO Lab 1,000 :
/ w/OD RET)
QUICKEN?
Maintenance and replacement
of photographic equipnent (1,009 ADO

OPERATIONAL EXPENS SS

Purchase of filmy rental of
PO accommodation boxes; rental a“

of velielesjcontingeney fund
TG

seassss

TOPAL IhL,500 27,520

rr)

73,170

We)
exedeansa

"2.549%

Cc) As in the psst, Tactond %, GsusDs will scheli “i-weekly accountings for
- : all progest exper.iGures with ‘appropriate receizts ari certifleationas
There ere ro requirements for ‘areiou carrer ‘ond the Station's
cepatility to provide. : : 4

Ce TEINS

,

A) In th re event of civil disorders er the evdlution of? complete or enforced
pensralié:: an the part of the hast sovermvmcnt, it is now believed that regular
operatic: cash econtses could be mainteinai with the active LIEATTY agents via
Taynond 2. GoRS0s or in his absence, liver 3. SANTLING,

B) In the ost walikely event of the estallistta:t of a regime hostile to
ODYCRS, Lintted contect could protsSlr ve ~einteine! with the active
project agents Minoush GLAENDS er cou Eowever, under the conditions

: descrites abo es it is doubtful whether thie prolect would he able to operate

rssss

against’ more than one-or two selected tarssss.

: C) Emergency commintestions plans for Oliver 3. So'uguING end Rarmona Y, OURENDES
: are on le in the station and gS Fealgus: A-L59F2 and TMMNA-15081,

In addition, in late 2S, © review was hold with all

of 33 Novecter 2),
- active asents of their recontact pions and vertal recomiution sicmals.

Ect 1 EI997 99k -Q0650 y0%- Wy

14-00000

Inotes DO ves Ono

CLASSIFY TO FILE HO.

mcaar 72 Fok. wo.
-

este wio€) eer. ro onance CJ

oisrnov CO) sic.

- PRAE POF 2

REPRODUCTION PROMIBITED

“ECRET c12gaez
PRIORITY DI CITE MEXI 4616
Wee Tye ic AMROD LIEMPTY.

1.“LISMPTY- 19 RETRIEVED Ty

WI SeP85N4 3899

CETTENS NONALCO SOx 25 AUG 65_
WHICH GERENDE PASSED STA NEXT DAY. SOTH LETTERS ADDRESSED IN NAME
OF EOX: HOLDER «aN ALIAS OF L-(3> #09 CONTAINED RANDOM NEWS-

PAPER CLIPPINGS. G AND STA IN{TIALLY FELT THESE PROBABLY SCANTLINS
TEST LTRS AND HELD SAME PENDING 3° RETURN FRON GUADALAJARA $31 auc.
2, SCANTLING EXAMINED LTRS 1 SEPT AND STATED THEY DEFINITELY
NOT RPT NOT HIS TEST LTRS. FURTHER? EXAMINATION REVEALS ENVELOPCS
: TYPED ON SAME MACHINGE AND ONE BEARS NO POSTMARK OR STAMPS ONLY

NOTATION LIBRE DE PORTE, STA ASSUMES THESE LTRS PROBABLY SENT
BY LOCAL SECURITY AUTHORITILS AND THAT BOX COMPROMISED, DOUBT:
“@MRIFT-1 COULD ARRANGE FOR INSERTIOM OF LIBRE DE PORTE LTR..

L-13 AND G SUSPENDING ALL LIEMPTY ACCOMMODATION ADDRESS SERVICINGS

UNTIL FURTHER NOTICE,

3, ADVISE, RECOPDS RTs

fho following action 1 , ‘
SECRET outhoriced: ty ~K egrb” . jel
/ { ust


14-0000

DISPATCH

_ thief of Station, Nexico City a 4
: | oxy QuALInIte Ose

PROCESSING ASTION, | es

+ SUASSIFICATION

SECRET

f a
EMARITD FOR SROTUING _

IG
+ CAN FUDGE IRDEXING
roe .
_. Lf acne

_ Chief, Kil Diviskon

‘saact \
LENPTY. Project ‘Expirarion. ‘

ACTION REEL RUTRUNCES

REFERENCE: UMNN~13,350

_ The |LIEMPTY Project expires on 30 November 1965,

Plesse forward the renewal request so that it reaches
Weadquarters by 1 November.
4 ‘

Ernest A. LUSBY

Distributions:
0 §& 1 - COS, Mexico City

] OLSPATCH SYMBOL AND NUMBER

“CROSS REFERENCE 70
| HMMW-13,942 re)

CLAESIFICATION. HOS FILE NUMOFR

| SECRET 50-6-78/1

OFHTAR, Test

WH/1/Bustos-Videla:me
COORODENATING

ed iA ?

| Willia

We > RDISPATCH


i

a
PAX EONS ACTON

| MLD ne Lesh bite

xx ps NOC BRT.

. |

Chief of Station, Mexico City

af

Chief, WH Division . . wort _

LIEMPTY Project Renewal

ACTION REQUIRED - REFERENCES 7 °
- Reference: HMMA 24650

a "1. The LIEMPTY Project Renewal request forwarded in
reference, was approved on 29 January 1965 for the period
1 Decenber 1964 through 30 November 1965 for a total of

_ $45,300; $27,675 for FY 1965 and $17,625 for FY 1966.

2, At the time of approval, ‘Assistant KUDOVE stated
he expects this project to live within the sum authorized
for the year, and that there will be no amendment for

additional funds.

“ §, As you were informed in HMMW 13282 in the dispatch
on the LIEMBRACE Project Renewal, KUTUBE is interested in
the problem of hostile monitoring of any radio communications
from LIMITED, You should remain alert to this problem, and
inform us ‘if Hendquarters can be of any assistance in helping
you maintain communications security.

4. You are reminded that the LIEMPTY Project, as approved,

only covers the salary for Oliver G, SCANTLING through 31 May

1963, It is suggested that 2 separate project be written to
cover SCANTLING if his new duties do not fall entirely under

any other approved project.
John N, CORNISH

Distribution:
Orig & 1 - COS, Mexico City

rn -—
CROSS REFERENCE 10 DISPATCH SYMBOL AND NUMBER

HMMW 13350

t
|
:
t

! CLASSIFICATION ~ HGS FILE NUMBER
\ SECRET \ 50~6-74/1

y

. ORIGINATING
TEAST

OFFICER ge 7
CBustos=Videla: jah
= COORDINATING

RI
Chrono

! Orin ek > SON ATONE Det te

aed
ac/wHp | eet | “RAFORD W, HERBERT

ee “——~T DISPATCH

CE FLE SYM DATE

. wee

p " CLASSIFICATION FROCTSING ACTIC ACTION
DISPATCH SECH ST | Jenner
Chief, WH Division NO INDEXING REQUIRED
sienna Zee |
: : CAN JU0GE INDEXIKG
nn gutet of Stathony Neston cits a
ile Mation

y

Ss jenovad of. ives 0 od D eT
ACTION REQUIRED . REFERENCES, . .
! Reference? RXNA=28550 dated 29 Ostover 1964

1. As WE section VI, subsectiur sé, of the attachment to Reference (the
Request for the Reneval of Project LISMETY), Station Moxico City 1s at present pre-
paring a formal Project Outline to cover KUPARK's relationship with and the
Operational activities of Oliver G, SCANTLING. This activity involves the conduct
and suppert of various operations targetted primarily against the local. Soviet Bhc Bloc
and PRRUEN installations. _

2. Isis reques ted that Reaiquarters assign a eryptonym and a four-part flle
number in the 50-6 serles far this pyvepescd project.

fox
Willard C. CURTIS

Hstributions
Sy c/p

$8 gl sob 2
CROSS REFERENCE TO. DISPATCH S$) v1 ANO NUMBER aa

IMNA-25254 2 January 1965
“Oy CLASSIFICATION f
SECRERM wie”

HOS FILE NUMBER

y 50-6-74 /2


14-0000

ppe/ Pc /FI-Cr
Projects

ROUTING OFFICE COMMENTS

COMMENT FOR INTERNAL STAFF USE (Not to go forward ta the Preisian)

COMMENTS AND RECONMENDATIONS (To go forward to the Division)

Tha CI Staff concurs in the renewal of ‘this extremely valuable

CI/CE operational support project.

CU SkNT DIVe
a GAN 1OER
DATE 6 ome

ion $26 use racvious covriow , SECRET eee ne! (43-20-40)

14-0000

bana

™“™ SEAL"T ~,

17 Deceuber 1964

MEMORANDUM FOR: Chief, EXO
SUBJECT ! Project LIEMPTY

_ Renewal of this project is recommended. This
Operation continues to carry out the sawe types of
activity it has engaged in for a number of yeara
and its product continues to be important to our
efforts against the Soviets and Communist Party in
Mexico. The Station should carefully select the
new operational assignment of Oliver G. ECANTLING
so as to make best use of this long-time asset's
considerable clandestine experience.

John Horton.
C/WH/PO/A


14-0000

‘

e —
One 0 “sy ESSSGs rus  “g soot
unr C+ Tustos-¥ Cr wwotx SECR ST —
or ZL X4506. no one —- [3 -O@.

OAlE, "4 December 1904 GME IN cs FE KO. -

to Mexico City

Re of

from = DIRECTOR

. ‘ “Neyo”
con, “GUH 8 . IIo oly, BPA PG 4, VE, FILE
TO MEX: . INFO; CITE DIR 6 86 0 !
LIEMPTY
REFERENCE: MEXT 2799 (1N $5308)* a
ré.> :
1. WE DO NOT PLAN MEL LINCGUISING | A PROVIDE LS FOPMATION SP

4M—D
REQUESTED DIR 68139"* AFTER MECOTIATING NUT HIN) SERORT CONCLUDING

AGREEMENT, .
1 2. ANTENNA ROTATOR REQUESTED [8 BETNE PCUCHED WREK 7 '
_ DECEMBER, _ |
oe if)
EMD OF MESSAGE yoo

OL/MEED/Edward Ponison (phone)

WIENLas fie cha yon (rhone)

. ; Lh,
WH Comment: . HEA A Se a
SLIMOUSINE in States this ek and preb abty aan ne Syoached if lees

aon. Stacvien incicares
Ronse value not partinent
: fay would arsive

; _ Wished discuss sale of LI
: -LIEMPTY would be sold at
' since house to he razed,
1 Station bv Christmas,
ex Hoadauarters approves dm orinci:

prpperty ta

ior) LIMOUSINE. Advise cempiete sales curronco pricr to
ho concluding agreenent with Erm 7 i termine at losst
; .. appreximate rental cast for LM Roan: nto and advi age
: > Ft

is 5

1 Vy QL acne 4
Logo RAE RaW, HERBERT : _— : 3
2 AC/WHD G Thiet, eye 2
ot ‘ ‘ uM 1
‘ RELEASING OFFICER ARTRANETG STING
' ’ cS .
REPROCUCTION LY OTHER THAN To. NS OSFICO IS Cony No.
: : .

ee reer rere renee mee

14-0000

Ch FIED MESSMOE

SECRET

- -

ALPROONCT Inn PRAMIATIFO :

“| ADVANCE Lary

[Cj rwe wwe CF siotreo [ _] runes vor Univ

TT TECRET 03 18332

dIR CITE MEXI 1799

TMMEDIATE ACT ION SAPS AMPROMES J) POAC PLE SELLING
Limi TaD Peostar/ Fo Limousine |

13 fic 35308

‘TEMPTY LIMITED “LIMOUSINE

-_ “SFS A MEXT 1762 (ra 3/737 ” i
# ae

\

B DIR 68139 *
; Je LIMOUSINE IN PBPRIME HIS WEEK. PROBABLY COULD BE REACHED
“THROUGH MATHEW P. DINGHLEY IF Ha DESIRES PERSONAL DISCUSSION. AS
. STATED REF A, FIRST FIGURES GIVEN REPRESENT LAND VALUE WHICH ONLY ONE
;YORTH CONSTYER ING FORT UR POSE THIS SALE. HOUSE VALUE NOT PERTINENT
SINCE HOUSE TO BE RAZED OWING AGE OF HOUSE, DOUBTFUL SALE OF MATERIALS
“VILL EVEN COVER DEMOLITIOW COSTS. APARTMENT RENTAL NOT AVAILABLE
UST TL LIMOUSINE RETURN AND DECISION MADE AS TO size AND CONFIGURATION

H

of APT.
2. IF ANTENNA ROTATOR REQUESTED IN HYMA-24630 NOT ALREADY OBTAINED,

- AND AN OTHER SEFVICEAPLE ROTATOR AVAILABLE FROM SUPPLUS, PLEASE
" UBSTITUTE. REQUEST ADVISE IF CAN BE SHIPPED TO BE HERE (BEFORE CHRISTHWAS,

“SACRET © cone cee

| secrer” | he tl

fess ene ee - wees :
re yee : er ae a, ame

14-0000

Lio)

weer

= eee ss neces araeennemenmarateaney 5,
—=~wwoaw

sate we emt ree

. ih . -NESSISE FORM
v3

com WH g wo OL Y, BPA, P52, VA Fee

, .
~

.» Suntos Vicelaiss
Wa/. O von BP z22337
&S0T7 © O No norm
1 December 196% © pte In CS PRE NO. So 6 TRL
KEXICO CITY
OIRECTOR

Si GER

sEXI : INFO. an ce

LIBIPTY LIGTED Oe re
RGF: 1EXI 1762 (IX 31737)"

68139

ADQS APPROVSS IN PRINCIFLS SAtiinc LUEATGD PROFERTY 0 LOCUS. ASSUME
TICS IS AT TOTAL TAX VALUE INCLUD LAS AO UCUSE. FER TARA UNO NOE, WE APPROVE
HIS DEYEYING PANONT OF LAND VALIR TOR TOGO YEARS. ASEOS CS WILL FAY ECUSE

VALUS IISESDLATSLY. ADVISE. COMPLITE Silas PRICE FOR HDQS CHCURRENCE PRIOR TO

CONCLUDING AGRESENT WITH LIOUSTAS. AcSO ALTE? 10 DETERONS AT Last

eh aoeetenatail

APPROXIMATE RENTAL COST FOR LIMITED ASAIN? AND ALVISE.
EE OP ISSEGE Sas
wil Le yp ei

a
“ies 2? gt .
WSS eCarter
t

formation the origital purchase
tation made 33,500 of repairs

bb fanfare

WH COMENT: *According to O7ft
. price in 1955 was $12,N0 acd
end repovetion.

o
702

n
3 S

4

* (
he ’ g
Vie, Wey be! $
DESHOND FITZGERALD sr ‘ « KAUFHAN
cAnD { : \U CAtH/1L
CODE CATAS OFFICERS . . -
wa AAgins orrican t paces : ee asraeericaving
= 2 AA = —_ Cownpenag wd {
AM THEISSUING OFFICE IS PRONIITED, Copy No.

REXRODUCTION BY OTHER ww

— ee ee me


14.90000

,

__ TOTAL COFRES —g )
a A

REPROOUCTION PROHIBITEO

j CLASSIFIZO MESSACE

— 2
[a, SECRET es

PRON PESSON/UNST NOTIFY ED 6 0
. - t2
[Nekica cr : ; -
| ACTION BOVaNCE COPY - ft —ite tf
i - 9g 1 }issuco scavtea [| ruaco, . :
. prQ oo. 7. .
d VR, FILE, PQ 2 oo :
{ STORET 2B7a3ag aa co
7] . ast ue
DIR CITE MEXI 1762 er, fy
| yresery a Oo | 2Biiovein31737
| REF DIR 65696 om ~
ny 9974)
MEX, 1597, 20 OCT 64
| 1. STATION HAS TWO BAK EVALUATIONS OF PROPERTY, ONE BY
“f .
; BANCO NACIONAL DE MEXICO OSTAINED BY SCANTLING IN PSEUDO AND OTHER
| AY BANCO AZTECA AT LIMOUSINE BENEST. RESPECTIVE EVALUATIONS
APE: LOT 185,266 AD 184,609 PESOS; TOTAL TAX VALUE 255,575

AND 249,242 PESOS WHICH OF COIRSE INCLUDFS PRESENT HOUSE. DISCREPANCIES

PETVAEN TWO APPRATSALS NOT SUFFICIENT WORRY ABOUT SINCE FOR 3UILDING
FURPOSES ONLY LAND VALUE PERTINENT, AND DISFERENCE HERE LESS THAN

2 ee

2. LIMONSING HAS ALSO HAD PLANS MADE FOR 4 STORY BUILDING

ON PROPERTY, GROUND FLOO® COMMERCIAL AND THREE FLOORS OF APTS,
OVE GF YHICH WOULD CUAPANTEE RESERVE FOR LIMITED AND ALTER aS STATION

NISMES, SMALLER EUILDING NOT DEEMED WORTHWHILE INVESTMENT.

MST STUDY SHOWS AUTLD ING COULD PROQASLY SE PUT UP FOR ABOUT
535,988 PESOS, OF WHICH LIMOUSINS COULD BORROW ABOUT 435,803
‘yupae’s RUTLD ING COULD 3E FINISHED WITHIN 5 MONTHS

A OSE Ce RNR of ITS SS deem oee:

FROM SANK.
OF BEGINNING DEMOE IT TON PRESENT STRUCTURE. LIMOUSINE: "OULD PUT val )

mi Veal
Je

pamesenyete eee

1

a

| SECRET

weer anes mane


14-0000

CLASSIFIED MESSAGE in_3) 737 paGe_Ze_
g... FROW OWN FUNDS WHATEVER NEEDED TO SUPPLEMENT BANK LOAN, IN ORDER Do
REGAIN BULK OF OWN INVESTMENT, WOULD LIE DEFER PAYMENT TO US OF
LAND VALUE FOR 3 YEARS. MEANWHILE ALTHO WILL REQUIRE ANOTHER APPRAISAL
FROM-RANK MAKING LADS, THIS WILL PRORASLY NOT DIFFER MUCH. FOR
PURPOSES GENERAL AGREEMENT BELIEVE AVERAGE OF AROVE TWO APPRAISAL
" RIGURYS FOR LOT CAN BE TAKEN FOR PLANNING PURPOSES, . :
3. LIMOUSINE NOT YET AVARE OF INDEPENDENT EVAL, BUT WILL INFORM ~ |
HIM IN GRDER ARRIVE AT FIRM FIGURE FOR NEGOTIATION IF HO APPROVES IN
PRINCIOLE,
A, NOTE THIS SOLUTION IDEAL FOR STATION, SINCE RETURNS PROFIT”
OF ALMOST 5020 DOLLARS ON ORIGINAL INVESTMENT AND RELIEVES KUBARK
OF ONUS OWNING AND ADMINISTERING PROPERTY AS WELL AS GIVING
LIMOUSINE FAVORABLE CHANCE PROFIT WITHOUT ANY COST TO -KUBARK.
5, WHILE RENT OF LIMITED APARTMENT NOT SET, KUBARK CAN CQUNT
OY GETTING FAIR SHAKE. DO NOT SELIEVE RENT FIGURE SIGNIFICANT
FACTOR IN woe .

sRORET~, CL LOE Le a a a

\

_ SECRET a °

aoe aot tere : ~ — Fore re se re err eee et


14-0000

we
ee or
.

f cr i” . - I*
ONG. Bust Lo 1 h MESSAGE FORM

_ : ar Hee (-NO wom
. 4808 ’ C_....._ 17
loan. 2 964 RUIN Gs HUE NO. & TR

1 «Mexico Cit

od WHS

| 7 BaRonth
wo fe-2 /e, File C t~

CONE
‘.
to prtry mexr ii(‘(ai‘é _ Tree
7 LIEMPTY £7069 --
f

SINCE PROJECT MUST BE SUBMITTED BY 30 NOVEMBER REQUES'

PRIORITY REPLY TO DIR 65696, 20 NOVEMBER 1964,
END OF MESSAGE

WH Comment: DIR 65696 of 20 November 1964 requested Station to
BXMEEXXX clarify question of whether the LIMITED
baschouse was to be razed and rebuilt or moved.
Costs must be included in project renewal,

Ke
bain ~ if f-

DESMOND FITZGERALD *
C/WED SHESY

COORDINATING OFFICERS :
fricaa . | . taneores AUTHENTICATING
ageeaning oF : SECRET hedod trom sutenstie orricea
dectassitieation
N BY

REPRODUCT' OTHER THAN THE ISSUING OFFICE 1S PROHIBITED. Copy No.

aha

ow


14-0000

oe te ee anne
eee nen

ons. C. Bustos-Videla
UNIT, WH/1--; ‘pee o
ot. 4506 -—
oar. 20 Novena ——.
vo . Mexico City ‘4 j-/ Ziel 2; db
: ad ROUTINE .
FROM DIRECTOR
CON eers:4 we 0h Fie, P@2, </eA
bie) MEXI wo Tt ot . Tal
REF; DIR $8997%
SINCE ANY MONEY REQUIRED FOR CONSTRUCTION COSTS LIMITED
BASEHOUSE SHOULD BE INCLUDED IN PROJ RENEWAL, AND IN VIEW COMMENTS
PARA SIX A OF HMMA 24650 LIEMPIY PROJ RENEWAL REQUEST, PLEASE
ADVISE WHSTHER YOU PLAN ANY ACTION ON REF,
END OF MESSAGE
WH Comment: ‘*Gave hdqs ideas on advisability of razing and
reconstructing building containing LIMITED basehouse,
; ” i .
hy
at
id
a
e ? . . —~ }
, Baim ACK...
3 DESMOND FITZGERALD ot ¥ ~ KAUYMAN
2 C/WHD 4 C/TH/1
t + : .

Ci |”. MESSAGE FORM

OOMDINATING OFF) iam . :
[aor AUYMENTICATI“GE
tented Dap wena

Peeagine OPricge CRET . orricee
L_SFECRET |

nepRook ON 3Y OTHER THAN THE ISSUINS QFFICE is PRORT PRONIBITED. Copy Na

~“N way

14-0000

\

DISPATCH | = Se =
secant mae Se

ees

Chief” of Station, Mexico o city TARAED FOR HOTLOG
RO INCCRING EEQUIETD 1

Chief, WH Division _. s

LIEMPTY Project Rescual
a TOM REQUIRED PREFERENCES .
ry PYI

1 - BNNG~10391, 31 Jan 62 _

The LIMSPTY project will expire on 30 Hovenber 1962. The Station

is requested to forward its renevel ‘request a8 son as possible,

Bo OF DISFATCR

Distribution:
O&l - COS, Mexico City

5O-G*P4/f

“PeSPATCH SYMBOL AND NUMBER
wess-10951

HEADQUARTERS FILE NUMBER

$0-6-78 /1

4
ROUTING | INITIAL)

AICPATCH i

14-0000

8
7

33
ic
38
3
az

MAFHLD FOR IRODUNG
80 (NODES EID

1 ONLY QUALIFIED
¢ MLADQUAPTURS DITA
CAM FUDGE INDUIRG

ABSTRACT

|
|
|

LIEMPTY Project Renewal
ACTION REQUIRED REFERENCES

REVERENCE: HMMA A 17999, 31 October 1961

3. The LIEMPTY Project was renewed on rf January 1962 for a
total of $49,560; $29,500 for PY 1962 and $20,000 for FY 1963, The
‘Fonewal request submitted in HMMA 17999 was approved withwt change,

i Eoeenoe 2, Attached for the Station's {nforuation and records is a
. -"eopy of. tha weworandus preparod at Headquarters forvardiag the Station's
Fequest for renewal, Pleage note how Headquarters broke dow the cost
structure into fiscal ‘yeare, Next time the Project is submitted for
renewal, it is requested that this breakdown be supplied by tha Station,

EXO OF DISPATCH

CATE SvFED DATE DISPATCHED

at cree enim a oe

Olstribution:
Mexico City, w/att,

re er

OFFICE
WH 3/Mexteo C/Bus top

{slo ater
pt/Ragiatry,:w7o" see
_SMALS SAlexico/enréns,..

OFFICE SYMBOL Dar
C/AWD

40)
ee ¢
53 USE PREVIOUS EDITION SEPLACES FORM 0105 WerCes MAY BE USED.

“DISPATCH


14-0000

oo (4) .
DISPATCH rs
SECRET on peer Aree
. wm

f WAR Ra Ne
Y MD INDELS PEQUIRED
tage Qala?

BEACQUARIERS DESH
CAN VOCE IRONS

Chief, WH Division
Part tug . \

LIEMPTY /Project Reneval

ACTION REQURED REPLAINCES . 4
‘

Cidef of Station, Hexico City

NFO

sre

ACTION RAQUIRED? See below
REFERENCE ¢ HMMW-1007,, 8 September 1941 |

The LIEMPTY Project will expire on 30 Movenber 1961.
The Station ie requested to forward its request for renewal 49
soon as possible, . .

END OF DISPATCH :

OATE DISPATCHED

DATE TYPED

Once ASPOTS

WH/3/Mexico c, Tf.

 naptit |

ft pte eer
al = WH/3/Mex/Chrend OPNICE SYMBOL

“Rr: 43s Loon i
al RR
cs
i N

OFFACER S NAME

BEL Asi NG

ue
ae
itl

aa nee Sao

- ao
Fee PREVIOUS EDITION @EFLACES FORM Bien BHA MAY OF USED |


14-0000

jovani semett aD NO
HMMA-17999
per: ty '

CLAS HEC ATION

SECRET M@APOR”

MRACUAETIRS PLE MO

50-6-74/1

Date
31 October 1961
swauect RE. “43,77 ~ (CHECK “X” OND
[. | MARKLD FOR INDEXING
Lx | NO INDDUNG REQUIRED

- LIEMPTY. Project Renewal.
3 | Pree SB
BY GUAURED HQ. DESK ONLY

Attached are the requisite number of copies of the Request for Renewal

pO

30 October 1961 RECORDS OFFICER STAMP
Tho fotlowing agtion by
ee. KO

euthsrizedc:

of Project LIEMPTY,

Attachment:

As stated above,
Even pages herewith,  ¢
Signe:

Odd pages under separate cover, ‘ .
~ R.O. 4250 - Unit Lil LA

Distribution: = °
(3>WHD (with five copies of attachmgpg); ir destruction, cite
“37 Files (with one copy of attachment) reasons cua cverdinate
42 appropriates

ULE PREVIOUS EDITION
REPLACES FORMS

$1.28, $1284 ANO S129
Witt APE OBSOLETE

niga Sof ase


fi
oh

ee SECRET “

(Bhon Frllod Eny

FREUD STATION

p AWEADVEST
faa,

Maxico City -

{ mewrea:
Lev oe

CASE CEFICER
LATEss ton

J. G. Keyn

‘ i rcawisario! mOOw NOL BUILOING EATEWS ON
‘ | Caearion 1013 Barton Hall '9s5s/3162

CONCURRENCES OF DIVISION ___—
Icopy| MEMORANDUM ATTACHES

CRGANIZAT ONAL TYPED AME (And sdanature) care Nas[ xe ete]
LAT a Moxie _ Jo John G. Eeyn

tat
ed P, Holman awd AL. Lo 4 NOV nov 38
pas aomnenas Mt > Cala es z= —_

_CONCURRENCES OF OTHER COMPONENTS

APPROVAL
TOTAL ANOUNT

\ 1 December 1961 | 30 November 1963 h9,500

APR WING AUTHORITY ; [peer

ee
TRY gug pene ent — “SECRET 50 - 6-74, =

Bree totrsans.


14-00000

os .
. ‘ ry ayy
Pe . ° : :
age heal “OF
_ SEBRE
; .
: MEHORA COUN >
. SsuUbIuet :
. WH --iMetieo City ‘
, a
1. egtacned aroject, ori
: is nrecantecc for r: 21 Tor Sho
: . throurch 39 povesber et. owns
i and pnotecrazcgie surveillanes opera
Bexico City Utavion oferntasrnc, are
acainst Soviet persameol aud anztallutions.
Authority yo0e from the
. DI = Jivision bu wear Log, and
Ger yh voliabllity of
i fund adarva of three
: contract gee 2
: erational ati
i tenance, ee
ehace of wl a] z
4 reowlr, _rapgnie cquip-
s mont 5 aa or tnres snouses,
. 6 Por reneucl di .
\ activ Lou. Cor 2
: Sscany? inves i
Follow.
tne pris me
mabaogy ~d
reveral 33
assets exe)
tean ¢ t SbACI LS.
was ab undez the ace
. . a
tion o nd: . 39
collec ton on the throu
na 6o support

pnote:


14-00000

ae

to the Station in the form af reatal or galg-quarters, count
surveilisnee, and procurlnes ond servicing Letter
Sivisson Jéels thet poth acpeets or the oroject

are

Greys. The

now Operating at optimum sire and does not- plan to exoand,.
the coming period efforts will be made to refine

use the existing organizational arrangements.

4. &ovropriate Gpecis
this orofect.

and better .

er=

worthwhile
to the stetion's activities, It considera taat the sroject is

In

Staff elements recommend renewal

’ I recommend renewal of Project LIENPTY as orgsented.

Se
—_—
Pa Uuntg
x it, HINES

Uhier, bor/PG
. ° dan 1362

Aporoved: .
vate

COP=un/?

Attachments:
Projece Cutline LIEMPTY

FI Nemorandun
Por CCG

C5
or;

Staff Coordination:
Por FI Start -s/d.
For CI Starf -s/F.

~-s/J.

Eaine
Hughes
Southard

450-6 - Wf

.
i MEMORANDUM FOR: Chief of Operations, DD/P

“THROUGHs DOP/PG
SUBJECTs Project LIEMPTY -

Foreign Intalligence Staff recommends approval of the
renewal of Project LIEMTY,
: : W. LLOY GEORGE
Chief
Poreign Intelligence

Attachment !
Project :

50-69 PY

14-0000

21 November 1961 oo. ’

_ LIEMPTY Project Renewal Request

1. It is requested that the LIEMPTY Project be renewed for the
ported 1 December 194 through 30 November 1963 for a total of $h9,5003
329,500 for Fiscal Year 1962 and $20,000 for Fiscal Year 1963, These
amounts can be broken down as follows:

FY 1962 FY 1963
o _ Salaries | 2h 000 15,500 ;
Transportation 1,100 900 v
Operational Expenses 3,900 3,100
Operational Equipment 500 500
Totals 29,500 20,000 :

- 2, It is not anticipated that any training will be required during
the next project year.

3. Emergency recontact instructions for Raymond H. GERENDE and
Oliver G, SCANTLING are on file at Headquarters,

be This project is primarily a support asset and does not provide
positive intelligence, .

5. WH Division strongly recommends renewal of this project which
covers some of the most valuable investigative and support assets available

to Mexico City Station.

yee

we.

5O- 6 - telf/


14-0000

SECRET/IGe

: - REVIEW OF PROJECT LIEMPTY

; } (For the Purpose of Project Renewal)
. ,

COVER SHEET

CRYPTONYM___LIEMPTY FIELD CASE OFFICER, Mle
Quinton N, OUSLE
STATION Mexico City CHIEF OF STA nop itlard (Gets.
ilard C, CUK

The attached project action is presented for approval for the period
1 December 1961 through 30 November 1962,

SECRETARBERS

fatto ae

14-00000

SECRET AGREE -

Review of Project LIEMPTY
7 : (For the Purpose of Project Renewal)

I, CURRENT OBJECTIVES AND PRODUCTION

A, Oliver G. SCANTLING Segment (discussed In relation to project
objectives):

1, “To collect operational Information pertaining to LIMERICK
personnel and physical facilittes,"" SCANTLING has continued (See the
last two Project Reviews forwarded as attachments to HMMA-1 4093,

13 November 1959, and HMMA-15979, 18 November 1960) to provide —
worthwhile information pertaining to thls objective.

a, During the past year SCANTLING has continued to be
used to follow up leads produced by LIENVOY. For example, —
operational Information recently indicated that the LIMERICK
target was using the services of a Mexico Clty firm to repair
safes, Through discreet investigation SCANTLING wag able to:
identify the firm, its location and the name of the owner In the |
event that we later wished to make an approach to him or to
exploit this Information In another manner, t

b. SCANTLING its still the Statton’s primary source for
keeping current records on the residences of the many LIMERICK
personnel in Mexico City. This is accomplished in several ways;
the most important being SCANTLING's follow up of all LIENVOY
leads which indicate the LIMERICK people are interested in '
renting a given piece of property. (Sce previous project renewal
request for additional detalls),

2. "To collect operational information pertaining to other targets
of opportunity, foreign official installations and personnel of intelligence
interest operating in Mexico." SCANTLING is very useful for collecting
information on other Station targets: 1

SECRET ASS a
an ut
TS ber 00.3 f

feth firing, FPP 7


14-0000

SECRET ASO
-2-

a, On the basis of a request to the Station from the

ODACID Chief, SCANTLING was sent to Puebla to be an

_ eyewimess to the 4 June 1961 Catholic insptred anrl-CASTRO
demonstrations, Not only did SCANTLING obtain the desired
information, and samples of many‘of the leaflets used, but he
prepared his report for the Station in time for the COS to give
the ODACID Chief a briefing at 1000 hrs., 5 June 1961,
SCANTLING does an excellent job on this type of assignment
due principally to his ability to observe and report objectively,

b, SCANTLING was instrumental tn establishing that
Fernando LLANES Cavero and his wife were living at a local
Mexico City address, This case has been of considerable
counterespionage Interest to Headquarters,

ce. SCANTLING has continued his contributions to the
Paul Frederick KIRSCHHOFF case by perlodic interviews with
the subject's neighbors and associates,

3. "To exploit operational leads through recruitments, debriefings,
and surveillances, ’ " SCANTLING has contributed to this objective both
directly and indirectly as will be noted by the examples listed below:

a> SCANTLING devoted a lot of time to the
surveillance and attempted recruitment of Abel ARTEAGA, a
Mexican national employed at the Cuban Embassy, SCANTLING
talked with ARTEAGA several times and undoubtedly was
primarily responsible for the later success of the recruicment
made by another Starlon agent,

b, Some additional time was devoted to the Cesar
GONZALEZ Sanchez case in February 1961 when SCANTLING

determined that GONZALEZ was still in Mexico City. Sce
the last renewal for additional details on this case,

ct. In connection with the above objective SCANTLING
has performed numerous pretext and neighborhood investigations
for the Station. SCANTLING also does most of the local -
investigations requested by ODACID and other ODYOKE
components,

SECRET/KSSBX

14-0000

SECRET ce
-3-

d. SCANTLING spent six weeks during July and
August of this year giving tradecraft and surveillance
-. training to LIPAILS 5 and 7 from Monterrey, Although
this ts.not a direct contribution to the above objective, it
is considered sufficlently related to mention here, oe

4, In addition to his contributions to the above objectives,
SCANTLING Is used for miscellaneous support requirements from the

; Statton, For example, SCANTLING is now handling LIEMBROIL-2 and

will continue to do so unttl the return of LIMOTOR-14 in June 1962, Also,

- ducing the past project year, SCANTLING handled the LIRICE surveillance

. team uncll July 1961 when Simon D, CLACKETT (ps) returned to Mexico

"City. SCANTLING Is also used to spot and rent safe houses and apartments

for other Station operationa,

5. As stared in the preceeding Requests for Project Renewal,
although SCANTLING's LIEMPTY Project objectives can never be completely
fulfilled, It. is the Station's opinion that SCANTLING has made important and
valuable contributions to LIEMPTY Project objectives specifically and to
other Station activities in general. SCANTLING's production, measured
against monetury expenditures, case officer time and other intangible factors,
unquestlonably justifies his continuation as an integral part of Project
LIEMPTY.

B. Raymond H, GERENDE Segment (discussed in relation to project

objectives):

1, “To collect operational Information pertaining to LIMERICK
personnel and physical facilltles through use of photographic base houses."
Three photographic bases, LIMITED, LILYRIC and LICALLA, contribute
to this objective, To avoid repetition, the Station Is omitting the usual
description of the functlons of these three bases and how thev contribute
to the above objective. There has heen no change in the coverage as
described in the 1960 Request for Project Renewal,

2, “To collect operational information and {identify operational

leads pertaining to Station targets of opportunity." The LIENTRAP
operation, handled by GERENDE, is still the major contributor to this

SECR ET/#3=e

14-00000

Tl,

- SECRET GREEK
-4- :

objective. ‘Ia addition to performing numerous photographic assignments
in support of ocher Station operations, LIENTRAP devoted nearly four
months, on a fulltime basis, to coverage of the LIERODE operation. For
several weeks the entire “take” from the LIERODE target was recorded
from the LIENTRAP vehicle, Later, the LIENTRAP agents operated the
LIERODE technical gear from the initial LIERODE stationary base,

3. “To provide operational support to Station operations, i.e.,
rent hotel rooms.and apartments, and conduct counter-surveillances, "
GERENDE is used frequently to rent hotel rooms and apartments for other
Statien operations and activities. GERENDE's comprehensive area
knowledge ard personal operational capabilities combine to make him an
extremely valuable Sration asset for such support activities. GERENDE
also procures and services post office box letter drops for the many
Station operations requiring them,

4. The quality and quantity of operational information produced
by the photographic bases and other activities under GERENDE's control
and supervision is considered worthwhile, The Station concludes, therefore,
that this segment of the LIEMPTY Project should be continued,

C. Relationship to Related Mission Directive Objectives:

As scated in the previous project renewal, it can readily be noted
that Project LIEMPTY has provided support to many Station eperations and
in this manner has been a contributing factor to the furthereance of the
Related Mission Directive, The project has not produced any positive
intelligence nor has it been intended that it should do so, The project's sole
purpose is 9 provide a mechanism for the development of operational
Information in support of other Seation operations,

CHANGES
There have been no changes in the LIEMPTY Project during the past project

year except that SCANTLING relinquished control of the LIRICE (formerly LIJERSEY)
surveillance team in July 1961 in accordance with previous plans,

’ SECRET/KSESe

14-0000

cd

SECRET /3
-5-

tl, © EFFECTIVENESS ____..

: There has been no change in Project LIEMPTY which would alter the
validity of the remarks made In Section II of last year's project renewal request.

WV, PROBLEMS

The security problem in connection with the LICALLA operation, which
was described in last year's renewal request, Is still present but has nor caused
any known difficulty. At Headquarters suggestion in HMMW-9736, the LICALLA
base was reactivated on 29. May.1961. ‘The base operator has been cautioned to be
ever alert for any unusual.incidents which might indicate that the base has been
compromised, This is the only problem experienced by the LIEMPTY Project

during the past project year.

Vv. PLANS

: The Station considers that the project is now operating at Its optimum size
and does not plan to expand it during the coming year. Rather, efforts will be
devoted to refining and better utilizing the existing project organizational

arrangements,
Vi COSTS

A. Past Project Year - Station finance records indicate that Project LIEMPTY
expended -$21, 458.00 during Fiscal Year 1961 (1 December 1960 - 30 June 1961) and
has thus far during Fiscal Year 1962 (through 30 September 1961) expended about
$11,000.00. It is anticipared thar about $8, 000.00 will be expended during the last
two months (October and November 1961) of the project.year, This will make a
total expenditure during the project year of about $40, 500.00, or some $12, 500.00
under the budget estimate of $53, 000. 00.

B. Ensuing Period - Of the toral $49, 500.00 budget, itemized below,
$29, 500.00 should be expended during the remainder of Fiscal Year 1962 and the

_ balance, $20,000.00 should be expended during Fiscal Year 1963. Normal accounting
procedures will be used for all expenditures,

SECRET AS

14-D0000

Lag rr

sucRETAgsEOR
-6-
AGENT ‘ U.S, $ PER ANNUM
Raymond H, GERENDE ; ‘  $ 5,520.00
Oliver G, SCANTLING ‘ 5, 000,00
Louise J, MACRINO : .

(@ $2.02 per hour) 1, 500,00
LIEMPTY-4 ; 2, 200.00
LIEMPTY-$ ae .

(@ $1.75 per hour) i 1,600, 00
LIEMPTY-6 i 3, 000, 00
LIEMPTY-7? {No Salary) ‘ -0-
LIEMPTY-$ ! 2, 000, 00
LIEMPTY-9 3, 000, 00
LIEMPTY-10 : 3, 900, 00
LIEMPTY-11 2, 800. 00
LIEMPTY~12 2, 000, 00
LIEMPTY=-13 2, 000.00
LIEMPTY-~-14 2,000.00
LIEMPTY-19 1,000.00 ,
LIEMPTY~-24 (No Salary) ~0-
Christmas Bonuses 1961 2, 580, 00

. SUB-TOTAL
OPERATIONAL EXPENSES
Maintenance of MV-2279, 2284 and

2286, $ 2,000.00
Procurement of Safehouses, post

Office boxes and renting ,

automobiles. 1,000.00
Purchase of information,

identification documents, and

bribes, 500. 00

SUB-TOTAL
OPERATIONAL EQUIPMENT
Repair, mairtenance and purchase
of replacement photographic
equipment, $ 1,000.00
SUB-TOTAL
SECRET /RRBOK py £0.

oe

$ 39,500.00

3, 500. 00

1,000, 00

14-0000

. ” . “~ ae
SECRET/ begga. ;
. -J-
® REAL ESTATE . mo

Rent, utilities and maintenance
' _ of following safehouses:

*LIMITED “7” § 3,000.00
*LICALA . 1,500.00
LILYRIC 1, 000. 00
SUB-TOTAL _ — 5, 500. 00
GRAND TOTAL $ 49, 500, 00

*LIMITED and LICALLA rents are returned to the Statlon by LIMOUSINE and
credited to Station miscellaneous receipts,

VI, EMERGENCY CONDITIONS

_ Please refer to last year's request for project renewal and HMMA-15982,
23 November 1960, and HiiMA-15991, 22 Novemher 1960

uh Ef

SECRET ASSS88K wet nt
~ 2

(Pree tb pe Fee c+

14-0000

”

CLASMFICATR <ESSING

DISPATCH |__ssesss

ONLY QUAL
wEacQeAs TERS OCS
CAN TUT INDE RING

°
Grief of Atatlon, Mexico

Cauiel, WH Divis
Bet

LIEMPITY/Proje: Ranewa}
ACTAIN ERQUREO REFERENCES

_ Tho LIEMPTY Project will expire on 10 Hoveuber 1961, It ie requested that
your reecumendation for roneval be pouched to reach Headquarters by 1 November 1962,

END OF DISPATCH

Distribution: -

2 = Mexico City
DATE TYPED
G@ September 1961)

eS Rete BOT TT TTT DISPATCH SYMBOL AND NUMBXR

DATE OsSPATCHED

WH/3/Mexico

oa aia

wit enh ened ee

IGE PRE VIOUS EDITION RERACES FORM 82 ves wea dE oD

1400000

ae?

| .

| ) Perrerares :
“DISPATCH [ere
|

|

MARRED FE NTRS
Chief of Station, Hexico City . p+}

“ho tht
BND eee
EATEN OF fey DeSR
AN BO TUS

eer

“9

sno

Chief, bHD nel

“pasta
ae Seen
Fy eevee
SsuautcT

LIEMPTY Project, Renewal ;
ACTION REQRERED RUTRUNCES : 7

i

1901-14793, 8 April 1960 .

\
1. The LIDPTY Project Renewal was approved on 3 February 1961 for a
total of $53,000; $31,900 in fiscal year 1961 and $21,100 in fSeoal year 1562.

2. No comments wore made by the coordinating Staffa.
END oF DISPATCH

Bistributions : : ;
2 = Haxico City i

DATE TYPLD CATR CISFATOHED:

13 February

ney
|

DISPATCH SYMBOL AND SUVEER

MEAQQUARTERS RUE NUMBER

of OFFICE SYREN

CAD

(SE P@EVIQUS EDITION ROMACES Hist £10 OG WAT de SED

DISPATCH


14-0000

| Cy (4
| [DISPATCH =
ited t Made ER RTT
t .

OM QU HD
PEA QUACLTS OLE
Can UME CROP DAG

wrens

‘suaucct

LIMPTY/Requost for Project Renewal
ACTION REQUINED REPLRUNCES
ACTION: See pelow

- REFERENCE: WO!-8515, 25 February 1960

‘Project LIEMPTY expires oa 0 Novesbor 1960, It is requested that

your recomendation for renewal be pouched as soon as possible,

END OF DISPATCH

c

Distribution:
2 = Mexico City

—_———} OFFICE

- Caek ” TYPIST ’
xT, 55 v7 : WU/3/Mexico RWitslander bj C/AVH/3/Mexicg
— WH/REgistky ¢ COORDINATING

| 3 .od 7 WU/SAlextco/Cnc ofS ore smn J pet
{oau,

2?
MAIC

eo)
Nee PREVIOUS EDITION REPLACES FORM 6G TEoM May BE USED


Ty arCM MN a

fIMMA-15979
nena |. PE - 1842
tO: Chief, WH Diviston ead
, . 50-6-74/1

Int

é

Oat
18 November 1960

ria cuece R ONE)

Chicf of Statton, Mexico Clty -
ac 7033

suet
- LIEMPTY Project Renewal TT MAERUD FOE INDELING
_ Tae cei eeauitto
WNOLLNG CAN GE JUDGED

BY QuALEO HQ DESK ONLY

ACTION FTQUIERD
- Renewal of Project

BPTEENC ES .

“Attached are the requisite number of copies of the Request for Renewal
of Project LIEMPTY. ,
o . _ e
yA c. UALS
Willard C, CURTIS

16 November 1960

Attachment :
‘Ag stated above, (Even pages forwarded herewith)

(Odd pages under separate cover)

Distribution:
3 - WHD (with five coptes of attachment)
2- Files (with onc copy of attachment)
a tp fe .
porett bei RECORDS CFFICER STAMP
The Pollowinz action is.

: authorised: Ae hegek/
— al

@: Oyo
: Signed: wh. , Pr zy)
BeO. 7052 = Unit Qo jx”
—__/

Meter If cect:
Feary
if cppropriaty,

i

oo hae

ce
(On Giri soar’

cate

faass 4 a ON

USE PREVIOUS EDITION
| L J CONTINGED

REPLACES OEME on
3128 ek ae SECRET 3K.

WHICH ARE OBSOLETE


14-0000

Ear eens

we! . :
elo \

CRYPTONYM: LIEMPTY HEADQUARTERS CASE OFFICER: , an

c

OPERATING DIVIS{ON: = WA Charlotte L, Zehrung

FIELD STATION: Mexico City ROOM NO.: 1015 Barton Hall
: EXTENSION: 2555/3162

TARGET AREA: Mexico DATE: 13 December 1560

1, It is requested that the LIEMPTY Project be renewed for the
perfod 1 December 1960 through 30 November 1961 for a total of
$53,000; $31,900 for fiscal year 1961 and $21,100 for fiscal year
1962, The LIEMPTY Project was programmed for $85,000. During the
past project year, approximately $59,880 was obligated,

2. This Project provides operational support toa the Station
and is not a source of positive {tntelLigence, Examples of opera
tional data developed through thls project are given in paragraph I
of the attached Station Review of Project LIEMPTY, There have been
no disseminations made at Headquarters of intelligence produced
through LIEMPTY,

3, The only training provided LLEMPTY personnel during the |
period under review was given to Raymond H, GERENDE, He is being given
~ training in bas{e flaps and seals techniques so that the Statioh will
have a trained agent outside the Station who will be able to provide
this service if required, No further tralning for GERENDE or any of
the other LIEMPTY agents is being contemplated for the coming year,

A, Attached for the inforrution of the Staffs is a dispatch
from the Station (HMMAw14793) dated 8 April 1960 which answers the
questions raised at the time of the last renewal,

5, With reference to Paragraph VII, Emergency Conditfon,
contained in the attached Project Review, the Mexican desk has on
record in the permanent file of Raymond H, GERENDE and Oliver G, ‘
SCANTLING, the details of emergency recontact instructions which
have been agreed upon between the Station and each Agent,


14-0000

— . . ay, rate oo
ene.

woQee

6. It {is requested that the LIEMPTY Project be renewed on the
basia of the attached Project Review,

‘q - - . oan fi . :
COORDINATION; ~~ nad . AL
. Ned P, Holman, AC/WH/3

C.W.

Cc, Wy Andersdn, WHD Proj, Officer

: Approved for Transuirtal : f _ le. Wer bheX ye
J, C, King, C/WHD
ry Se | ce?
DATE

ATTACHMENTS: (4)
Review of Project LIEMPTY
Copy of HMMA-14793
Form 680
Folder with past renewals

C4
bare
ou

Paste
“4

= a
ro
: a REVIEW OF PROJECT LIEMPTY
(For the Purpose of Project Renewal}
. COVER SHEET
‘ : - CRYPTONYM LIEMPTY FIELD CASE OFFICER~ ion GOTER

STATION Mexico city CHIEF OF STATION Vithaocceit fe

The attached project action is presented for approval for the
period 1 December 1960 through 30 November 1961.

4

Toe AMMA 18982


14-09000

I. CURSE.

SECRET/ gee

REVIEW OF PROJECT LIEMPTY
(For the Purpose of Project Renewal}

NT OBJECTIVES AND PRODUCTION

Ae’

Oliver G. SCAKTLING Segment (discussed in relation
to project objectives):

1, "To collect operational information per=
taining to LIMERICK personnel and physical - |
facilities." SCANTLING has continued (See the
last Project Review forwarded as an attachment -
to H®A=-14093, 13 November 1959) to provide
worthwhile and significant information per=
taining to the above objective. There follow

a few exanples cf SCANTLING's production:

& <A detailed casing of the LIMERICK
electrical power supply was forwarded

to Headquarters as an attachment to
HRWA-14496, 12 February 1960. The pro=
duction of this type of operational
information, which takes several weeks
to compile accurately, illustrates the
unusual talents possessed by SCAKTLING
together with his valuable contributions
to the Station's operational information
collection effort,

b. SCANTLING hag been used frequently
to follow up leads produced by LIFEAT/
LIMSRICK (now produced by LIENVOY). For
example, in May 1960, LIFEAT indicated

that the LIMERICK target was having con—
siderable contact with an AGSACIA ROBLES
concerning the handling of incoming and
outgoing shipments. By discreet investi~
gation, SCANTLING was able to provide the
Station with additional pertinent information
about the address, owner and type of business
engaged in by the firm, Such information

then becomes readily available for exploitation
should a LIMERICK shipment of oarticular
interest come to the attention of the Station.

c. SCANTLING is the Station's primary
investigative asset for keeping track of -
current residence addressees of LIMERICK
persornel, The Station considers it important
from the counterespionage standpoint to main-
tain ingormaticn on the lecatien cf all

es cary Fr


14-0000

~ O-—™ memo _ : ~
Cig dd fia
vals

olen

LIMERICK residences, In addition, specific
targeto are continually considered for LICOOL
installations. A recent example of SCALTLING's
efforts inthis connection wuld be the spot
ting and acquisition of the LIMOTOR base in

the same apartment building with LITALOK -l.
Contributions of this type operational informa=
‘tion are quite time consucing due to the
necessity for checking cut several apartments
that a LIMERICK individual may initially be
considering as a residence.

2e "fo collect cperational information pertaining to.
other targets of opportunity, foreign official installa»
tions and personnel of intelligence interest operating
in Mexico." Aa indicated below, SCANTLING is also
extremely useful for collecting information on targets
other than L{MERICK: :

@. In March 1960 SCANTLING was instrumental
in locating property adjacent to the LITABBY
installation which the Station has since

rented in anticipation of initiating photo~
grephic and technical operations, SCANTLING ~-
was able to accomplish this assignment only
after a thorough casing and pretext investi-
gations of the several pieces of property
appropriate for such operations,

b. SCAINTLING is also used to follow up
sensitive leads in connection with LIFEAT
and LIEN VOY production from LITABBY and
sister targets (See example as to type
under I,A,1, b and c above).

Ce SCANTLING was used ac an investigative
asset to determine the local address and
exact employment of Gorden William GROVES
(201~220025), a counterespionage case of
interest to Headquarters and ODENVY.

3. “fo exploit operational leads through recruitments
debriefings, end surveillances.” As examples of
SCANTLEIG's contritution to this objective, the
following cases are listed:

a. SCANTLING devoted a considerable amount
of time to his attempts to locate Cesar
GONZALEZ Sanchez, a known agent of a Com
munist Country. He followec various leads
on GONZALEZ fron Harch to Auguay 196C before

OG sea / srpet aad

14-0000

GONGALEZ was finally identified and his

Mexico City home aid business addresses were
ascertained, See KMMA-15626, 2 September 1960,
for further detalls-on this case.

Lon. >.. The preliminary investigative work on a
. KUSCDA case of priority interest was conducted
~ by SCANTLING. During this investigation it
. was necessary for SCANTLING to travel to
- Aquascalientes, Guanajuato md Ninatitlan to
eek, obtain the information required by Headquarters.
. Sce the attachments to Wint-1416, 20 May 1960,
for the results of the investigation.

4e In addition to his contributions to the above objec=
tives, SCANTLING is used for miscellsneous suprort
requirements of the Station. For example, SCAKTLING
hardled several of Raymond Hs GERENDE's (ps) operations
while the latter was away from hexico City during Auguat
énd Septenber 1960. Also, SCANTLING has been managing
the LIJERSEY surveillance team since the departure of
Simon D. CLACKETT in August 1960. It is hoped that
SCANTLIXNG can be relieved of this assignment as soon

as the LITEMPO project is approved. SCANTLING has also
been used to spot and rent safe houses for various
Station operations, a valuable operntional support.

service.

5 As stated in the preceeding Request for Project
Renewal, al though SCANTLIAG's LIEXPTY Project objectives
can never be completely fulfilled, it is the Station's
opinion that SCANTLING has made inportant and valuable
contributions to LIEMPTY Preject objectives specifically
and to other Station activities in generd. SCANTLING's
: _ predustion, measured against monetary expenditures,

° case officer time and other intangible factors, wiques~

ticnably justifies his continuation as m integral part

of Project LIEMPTY.

B. Raymond H. GERENDE Segment (discussed in relation to project
odjectives):

1. "To collect operational information pertaining ‘to
LIMERICK personnel and physical facilities through ‘use
of photographie base houses." Together with their
extensive photographic coverace of the LIMERICK target,
the photographic bases also contribute other types. of
operational information: '

a LINITED - This base compiles daily logs 1
indicating all arrivals, demrtures and,
where possible, identities of every person .
visiting or working at the LI ck target.

é

=


“SECRET ARSSORP

* This information Is particularly useful in keeping track ae
LIMERICK personnel and asstating with the identification of
visitors to the installation, Also, LIMITED maintains a
summary attendance llst of LIMERICK employees on a dally
basis; this enables the Station quickly to ascertain the
presence or absence of an employee on any given day,

. Finally, one other significant service ts performed hy this
base, the radio dispatching of the LIEMBRACE surveillance
team on LIMERICK personnel and targets of opportunity,
LIMITED's photographic coverage is still concentrated on
visttors, as opposed to employees, to the LIMERICK
installation, A recent example of the base's contributions to
Station efforts is the case of Joseph Ralph MAURI. In this
case, a LIENVOY lead indicated that an American might visit

- the LIMERICK target on a certain day, The base was alerted

to dispatch the radio-controlled surveillance team on any
person appearing to be an American, The results of this
assignment were indicated in MEXI-6392 and several other
cables, LIMITED was also able to provide photographs,
which when compared with photographs provided by Head-
quarters, left no question as to MAURI's identity,

b, LILYRIC - This base's ourput of high-quality clandestine

photographs has been in about the same quantity as last year,
In addition, the base operator, LLEMPTY-l4, prepares weekly
reports on LIMERICK empioyees and their wives, VILYRIC
ainy performs the assignment of noting and reporting the
license plate numbers of all cars bringing visitors to the’
LIMERICK installation, LILYRIC photograplis also are con-
centrated on visitors to the target, as opposed to employees,
It should be noted that LILYRIC operates for photographic
coverage during the hours from daylight to 1400 hours each

.. day of the week except Sunday, The LIMITED base maintains

photographic coverage from 1400 hours to darkness each day
except Sunday,

c. LICALLA - As reported in previous correspondence, the
LICALLA base contributes to the collection of operational
information through photographic coverage of LIMERICK
employees and their families, Also, the base operator,

SECRET gore

14-0000

LIEMPTY-9, supplies extremely worthwhile information
pertaining to the apparent positions and jobs of the target
employees, -He accomplishes this objective by ¢areful
observation and analysis, LICALLA also maintains a datly
attendance roster of all LIMERICK employees, LICALLA
coverage of the target, both photographic and physical
observations, enables the Station to keep abrest of LIMERICK
personnel changes, a vital contribution to the Station's counter-
esplonage effort,

2, “To collect operational information and tdentlfy operational leads
pertaining to Station targets of opportunity,” The LIENTRAP operation,
handled by GERENDE, ts the major ‘contributor to this objective, It
has been possible for LIENTRAP to take photographs and to perform
pretext Investigetions in support of numerous Station activities. ‘The
cases listed below are cited as examples:

a. In the case of Cesar GONZALEZ Sanchez (see I, A,3,a, above)
LIENTRAP was able to procure photographs of GONZALEZ at his
Mexico City residence which, when compared to Headquarters
provided. photographs, lett no doubt that GONZALEZ was the
subject of interest to Headquarters,

b, LIENTRAP confirmed the Identity of Olga CASTILLO de Ledon,
a frequent visitor to the LIMERICK installation and an ardent
supporter of the present Cuban regime, through a pretext
investigation of the residents of an apart ment building where
CASTILLO was believed to live. Later, LIENTRAP supported rhe
results of the investigation with excellent photographs of the
subject, 7’ -

3. "To provide operational support to Station operations, i,e., rent
hotel rooras and apartments, and conduct counter-surveillances, "
GERENDE is used frequently to rent hotel rooms and apartments for
other Station operations and activities, GERENDE's comprehensive
area knowledge and personal operational capabilitles combine to make
him aa extremely valuable Station asset for such support acrivities,
GERENDE also procures post office box letter drops for the many
Station operations requiring them,

SECRET Aree


14.90000

4, It is the Station's conclusion that the money and case officer tlme
expended on this segment of the LIEMPTY project is worthwhile and
should be continued tn view of the quality and quantity of operational
information produced,

Simon D, CLACKETT Segment (discussed in relation’ to project

objectives) :

1, “To collect operational tnformation and to identify operational leads
pertaining to the LIMERICK target and Station targets. of opportunity,"
During this project year the LJYERSEY survellance team under the
direction of CLACKETT began contributing to the Station's support
efforts through pretext investigatlons and physical survellances, Some
examples of the team's work are listed below:

a, Rafael TISCHLER Guzman (201-64372) is a Guatemalan
Communist which the team had under surveillance from
November 1959 to April 1960, The surveillance, together

with Information acquired from other sources, eventually
resulted in an‘ unsuccessful recruitment attempt on TISCHLER,

b, Pericles FRANCO Ornes (201-64546) - FRANCO Is a

Dominican of interest to the Station, The LIJERSEY ream

devoted portions of five mouths, January to May 1960, collecting 1
information on subject through physical surveillance, ;

c.. Jose Maria "Chema" LOPEZ Valdizon (201- ) was the
subject of a physical surveillance during May and June 1960,
LOPEZ was iater deported from Mexivy ikioiigh the efforts
of LITEMPO-2,

d, CLACKETT and the LIIERSEY team performed numerous
pretext Investigations on Station targets cf opportunity and on
three separate occasions during the project year served as

a counter-surveillance escort for Station officers in other
operations.

2. CLACKETT, just prior to his resignation in August 1960, spent ;

about five weeks giving tradecraft and operational skills training to to
LITEA-1, Although not specifically covered by the project objectives, .
this ability on CLACKETT's part is considered a significant con- 4
tribution to the Station's support efforts, ne

SECRET QRS

14-0090

i,

“3. In view of CLACKETT's resignation, which was effective 31
August: 1960, and the proposed transfer of the LUERSEY team to

- the. LITEMPO project, this segment of the LLEMPTY project wipl

- not-be renéwed, However, for the record, it is considered that -
___the CLACKETT segment of LIEMPTY was worthwhile and the
~~“ expenditure of Station assets in connection with LIIERSEY operations

were justified,

-D, Relationship to Related Mission Directive Objectives:

It can readily be noted that Project LIEMPTY has provided support to
many Station operations and tn this manner has been a contributing factor
to the furtherance of the Related Misston Directive, The project has not
produced any positive intelligence nor has it been intended that it should
do so, The project's sole purpose {s to provide a mechanism for the
development of operational information in support of other Station
operations,

CHANGES

A, Simon D, CLACKETT

The unexpected resignation of CLACKETT in August 1960 has
necessitated the decision as how best to utilize the LIIERSEY surveillance
team and still benefice from the training and experience gained by the team
during the past year. As explained in the LITEMPO project outline, it was
decided that the LITEMPO Staff Agent would have the time, the need and the
requirements to handle and manage the LIJERSEY tcam on a regular basis;
consequently, the Station believed that such a solution to this problem would

permit the Station Lv cuuiluue io profit from CLACKETT's pagt efforts,

B. Oliver G, SCANTLING

Since CLACKETT" s departure, SCANTLING has been handling the
LYERSEY team as an interim measure pending Headquarters approval of
the LITEMPO project. SCANTLING has been exposed to, and likewlse
knows, only one of the team members, LIEMPTY-20, SCANTLING is

known to L-2G only by an alias,

SECRET/


7"

eet : ot i

C. -Pereonnel CHanges -

“Ll LIEMPTY- “Is - Meniber of the LIJERSEY surveillance team eo
.< ‘Transferred to Project. LITEMEO and eryptonym changed
LITED-2, :

2. LEMPTY: -16 -’ Member of the © LYERSEY 5 gurveillaace team - *
Transferred to Pro ect ‘LITEMPO and cryptonym changed 7
LI. TED-3: - :

3. LIEMPTY- 20 = Assistant Team Leader of LJERSEY surveillance
team -, Transferred to Project LITEMPO and | cryptonym ct changed to

LITED-1

4, LIENPTY- 25 - Most recent additlon to the LUERSEY surveillance .
team, Transferred to Project LITEMPO and cryprony™ changed to |

LITED-4,

5. There have been no other personnel changes within the LIEMPTY
project, excepting the resignations of Simon D, CLACKETT and
Wilma J, FIORDALISL,

tl, EFFECTIVEN ESS

AY General comments pertaining to the value of the. project efforts to the -
‘Station's needs - The Station is of the opinion that its operations are only
as good as ‘the support mechanisms backstopping and contributing to them,
! The availability of unilateral-support agents and organizations, such as
“| the LIEMPTY Project, to investigate leads and co collect operational
informacion is an indispensable ingredient to the Station's espionage and
counterespionage: objectives, . The Station would be seriously handicapped
’ in its operational activitles should the support services of suck agents as
GERENDE,. SCANTLING and the agents under their control be suddenly
made unavailable, ; . ;

“B. LIMERICK Target - The basis for most of the Station's counter-
espionage activities directed against the LIMERICK targer require detailed
' knowledge of the identity, activities and fellow associates of LIMERICK -
personnel, Fhe LIEMPTY photographic basechouses. undoulnecty provide — -
-more of-this type iitormation than any orfier’ ‘Station operation, The .

; a an “production trom LIEMPTY photographic bases and from the LIENVOY.

project provide the Station with the large ma jority of LIMERICK leads.


14-0000

. ; * a _ ; : - : 7 - :
SECRET/MBOF

- “29-

-C.- Targets of Opportunity - The ‘immediate avatlability of independent -

. * agsets to perform investigations, - -photographic assignments and other _
. essential types of support services in connection with Station targets of

opportunity’ represent an’ operational advantage which thts: Station’considers .
ts due to stich LIEMPTY. assets that an agent canbe -

. “sent. to distant. areas in'Mexico todo tivestigations, that. photographs can
‘= be made of individuals ‘and places which are of operational interest and .
apartments and-hotel -rooms'can be acquired tn fictitious nanies tn.”

. support of sensit ive operations. and Activities, —

D. “Although the progress and ‘success of any support project depends

" upon requirements from other Station operations, it must be concluded

that Project LIEMPTY has indeed been effective during, the past project

“year,

PROBLEMS

A, Security - The activities of the LICALLA base were suspended in .
September 1960.as a direct result of the arrest of three KURIOT
technicians by the Cuban Government, One of the technicians was known
to have knowledge of the four LIMUST units (LICALLA Is located tn one
of these units) and the Station considered it appropriate to. suspend photo-
graphic operations:pending resolution of the situation. At this time,

. there {s no indication when“LICALLA operations wil! be resumed, . The

‘LICALLA base operator has reported that. there have been no unusual

“inquiries or othér suspictous actions which might indicate thar LICALLA

has been compromised to LIMERICK personnel; however, such a
possibility will exist unt the release of the three technicians, No
other security problems have occurred during the past year.

' PLANS |

A, Processing of Photographs-- During the past year considerable
‘progress has been made in the Station's handling, i.e., sorting, indexing,
identifying leads and filing, | of phorographs produced by the several hases,

B. . Photo: sraphic Techniques ~ The previous LIEMPTY Project Renewal
Request indicated that the Station planned to try new techniques using
HY~PAN film in_night photography.—H¥-PAN_film_was_used_on_a-trial

_——--~ "basis during daylight hours with r results, Almost invartably, prints
eee | ig day ent poo NOst y, P :

~y

‘SecReT ame. we

a
r


14-00000

VI.~

SECRET/ SR
-10-

from HY~-PAN negatives were too gralny and, consequently, were of
little use. in producing good identified shots of individuals, In view
of these experiments, night photography has not yet been attempted,
It should be noted that Eastman: Kodak's new TRI-X PAN film, which
all bases and LIENTRAP now use, is superior to any film previously
used by the Station for clandestine photography. The quality of all
base photographs have been increased considerably as a direct résult
of this new film.

C, General Comments - The Station belleves that the GERENDE
segment is now Operating under optimum organizational arrangments
and there are no plans for expansion contemplated at this time. It is
expected that SCANTLING will soon be relieved of his interim
responsibility for the LYERSEY team and can concentrate more on his
Investigative and casing activities. The transfer of the LJERSEY team

- to Project LITEMPO reduced Project LIEMPTY activities by an

appreciable amount. It ts not planned, during the coming year, to
expand present LIEMPTY activities,

COSTS

A, Past Project Year ~ Station finance records indicate that Project
LIEMPTY expended $19, 120. 91 during Fiscal Year 1960 (L December
1959 - 30 June 1960) and has thus far during Fiscal Year 1961 (through
31 October 1960) expended $16, 734.69. Contract Agents salaries and
allowances paid by Headquarters bring the total expenditures for It
months of the project vear 10 approximately $5V, 000.00. An additional
$4, 000.00 will be oblivated during the 12th month of the project year,
This will bring total project expenditures to about $54, 000. 00 for the
entire project year,

B, Ensuing Period - Of the toral $53,000.00 budget, itemized below,
$31, 900,00 should be expended during the remainder of Fiscal Year
1961 and the balance, $21,100.00, should be expended during Fiscal
Year 1962, Normal accounting procedures will be used for all
expenditures


14-0000

AGENT U.S, $ PER ANNUM

Raymond H, GERENDE ¢- 32/43 $ 5,040.00
Oliver G, SCANTLING ¢. 7¢%e3 4,560. 00
Loutse J. MACRINO «-¥/7%>2 2, 500. 00
(@ $2.02 per hour) : .
LIEMPTY-4 ¢- 4/574 2,000.00
LIEMPTY-5 ¢- 58¥F2 1, 500, 00
(@ $1.75 per hour) \
LIEMPTY-6 ¢. 2 77/F 2, 800, 00
LIEMPTY-7 No Salary ¢. 36797 -0- .
LIEMPTY-8 ¢- 34¢74 1,800.00
LUEMPTY-9  ¢ -52697 2, 800. 00
LIEMPTY-10 ¢- s37% 3, 600. 00
LIEMPTY-11 ¢- 4/¥37 2, 50C. 00
LIEMPTY-12 c- 3¢2a6¢ 1, 800, 00
LIEMPTY-13 © -Y69 42" 1, 800.00
LIEMPTY-14 ¢. G76 1,800, 00
LIEMPTY-19 cp 74577 1,000. 00
: LIEMPTY-24 No Salary ¢-1s972 -0-
j Christmas bonuses all personnel 2,500. 00 ;
SUB-TOTAL $ 38, 000, 00
OPERATIONAL EXPENSES
Maintenance of MV~-2279, 2284 ;
and 2286. $ 2,000,00 ,
Operational Travel 500, 00
Trocurement of Safehouses, post 2,000. 00
office boxes and renting '
automobiles,
Purchase of information, 2,500.00
identification documents, an
bribes, ;
SUB-TOTAL $ 7,000.00

SECRET Lede? oy


OPERATIONAL EQUIPMENT .

Repair and matntenanceof . $ S00.00
camera equipment, ~
Purchase of replacement 2, 000. 00
photographic equipment and
supplies, Oe _.
~ c
SUB-TOTAL 2,500, 00

‘REAL ESTATE

Rent, utilities and maintenance
of following safehouses:

VIL,

*LIMITED $ 3,000.00
*LICALLA 1, 500. 00
LILYRIC 1, 000, 00
SUB-TOTAL 5, 500,.00_
GRAND TOTAL $53, 000, 00

*LIMITED and LICALLA rents are returned to the Station by LIMOUSINE and
credited to Station miscellaneous receipts,

EMERGENCY CONDITIONS

As regards the requirement listed tn CSI-F No, 230-60, Annex A, for

. eommunications arrangments in the event of "Emergency Conditions, "

the Station does nor anticipate that this project would or could continue
to function under its present objectives, However, both principal

" agents, SCANTLING and GERENDE, would very possibly be worthwhile
sources of information to maintain contact with under any adverse

conditions, Both of these agears identify themselfs, In terms of
ideology, motivation and perspective, more as Americans than as
Mexican nationals (which they are). It is reasonable to assume, there-
fore, that SCANTLING and GERENDE would become valuable contacts
in any emergency situation, .

SECRET ASOR- cai
us 8 ce f.

NI}
a)

wee

z
:
7
;
ge
5
i
i
E

The Station ig aware that the previous project renewal stated that
emergency communications arrangments were being made, The
Station has finally obtained the U.S. addresses of relatives through
whom. GERENDE and-SCANTLING could be contacted under most __
situations, This information will be forwarded separately,

SECRE Tyson?

puso


Chas ATION, CEWATCH STMBUN AMD Pet

DISPATCH | _ weuans

TO} Ghief of Station, Mexico City a NTS TG
a SOmbsTh
FROM 9 Chief, WED Ba

MAEEED FOR!

NO INDE Te Set Quiato
ee

INDEXING CAN Bf JUDGED

BY QUALIFIED HQ DESK ONLY

= LIBPTY Froject Renewal”

aI Paragraph 2 = Please subalt detailed reviow of
.™ weefulnees ond value of ths photo basehouses,
Are threo Justified?

0-24093, 13 Hovenber 1959 _

a, The LIBETY Project vas renewed on 8 January 1960 for the —
erty Deoauber 1959 through Jl November 1960 for a total of $84,9103
485 far fiscal yeer 1960 ani $36,425 for fiscal yeer 1961.

2. the fetioving staff coments vere note during the reneval process!

Ge KUDESE noten that the CI valus of the project is
-“@griealt to faige since St appoaro that much of the uaterial ,
proinuosd resains fa the Station for exploitation, Hovever,
EDDESK remarks that the value ef the prejoct ahould bo increased
vhen the CLACKETT surveiliancs tesa enters into active operation,
KUDESK gaggesto that the Station be queried as to the protext oF

circumstances unior which SCANTLINO frequently visits Inez Pareda
edjacent to the Soviet

instelletien.

>, KUTUBZ/CPS notes that while tho project review presents
a clear picture of the alas and ebjectives of the various seg
manta, 2¢ deas not previde, exeept in the case of SCANTLING,

pheto eeverago bo reviewed from the standpoint of value ond uss
fulness with a view to de whether the LILYRIC activity
eculd not be safely aliminated and the additional photographie
coverage conducted on a more galective basis, witheut paterially
affecting overall usefulness, KUTUBE/O?3S notes that, in the
abegnee ef further proaf of usefulness, the color photogr: end
moving pictures appoar to be an unnocsssary lwury, KULUBE, Ors
commande the careful handling of the CLACKETT seguent and requests
that the naxt project action include examples af the tean's

progress,

3, The TVA eppreval for the additional vehicle vas fervarded undar
Dispatch Fo, HYS-1211, The HV mmber assigned by JBECHO is XV 2320,
fhe usual Delogation of Procurensst authority ia being forvarded by
JBECHO chanwels.

19 Februsry 1960

Pistribubioss
3 = Mexico City
1- ifedroom

og
af : LOD YE
{2faxico Chrono 4 A MEE Ceo

foie
ae a

‘Ala Atoxteo/, I. LSI Joh

Cuda CATON

SSCRET

FORM USE PRENCOUS EDITION
os $3 TEL ATES FORMS

{ | CONTINUED

Std bE LEA AND UTP
mice ARE OOSOLETE

14-00000

y

~

AWAIT SYMECR AND MD

= . CLAS HRCA TION
DISPATCH SECRE 1/2 K HIMALA = 7093
_ . a vo

10 Chief, WH Division were
mo . 50-6-74/1
FROM ; 7 : ae

‘Shief of Station, Mexico City — 13 November 1959
suBiect TT ME ay" — (CHECK “OND

Renewal of Project LIEMPTY P| sAentD ros wotuNo

Pac [ NO INDUUNG RtQuiReD .

ACTION FEQuIRED INDEXING CAN BE JU0GIO

- Renewal of Project LIEMPTY _ BY QUALIFIED HQ. OFSK ONLY

REFERENCES)
Attached is a review of Project LIEMPTY activities during the past year.

Allard (We

iNard C, CURTIS

Renewal of the project is requested.

ME: sler/vps .
10 November 1959 RECORDS OFFICER STAMP
. Tho fot Lo: ‘
Distribution : Ruin
<7 Hqa w/5 copies of attachment ee
7 Staued ia. a ld. ww
SON inn cog di
if Oppropr lato. nate
coe vifp \°
a USE PREMOUS ERITION i CLASSIC ATION PAGE NO ra
BEPLACES FOR te ene . -
sim Smad ONTINUED

WHICH ARE A}
——

rl el

cee bear tue 4 : a nwes Ad ms

MEMORANDUM FOR: Chief, FI HEADQUARTERS CASE OFFICER

SUBJECT 4 Project LIEMFTY _ Name__C,_Zehrung
J Renewal =~ Room__2121 Barton.

Ext._ 2

Sa> > > a
Date__9 December 2959

1. It 4a requested that the LIEMPIY Project be renawed for the
‘period 1 December 1959 through 30 November 1960 for a total of
$84,910.00; $48,485.00 for fiscal year 1960 and $36,425.00 for fiscal
year 1961, LIEMPTY was last approved for the period 1 December 1958
throtigh 30 November 1959 for a total of $95,380; of which it is

eatimated $74,259 has been obligated,

- 2. It 4s requested that the Project be renewed on the basis
of the Project review prepared by the Station which is attached.

3. The security incident referred to in paragraph IV,B on

page 6 of the attachmont, occurred on 20 September 1959, While on

an operational assignment LIEMPTY/10 and the LIENTRAP vehiole were
temporarily detained by the Servicio Secreto de Mexico (Mexican Secret
Service), At the time of the incident the LIENTRAP vehicle waa
carrying out an ‘assignment of photographing a Cuban rally which it
was expected would ba attended by many of the leading Mexican and
Central American Communists, The police were also covering the
meeting for thé-purpose of preventing a Communist—inspired demonatra-
tion and they searched LIENTHAP believing it might contain Communist
‘propaganda, When they saw the fim they seized the filn,the truck and
LIEMPTY-10 with the belief the Communists hed filmed sane rough-hended
techniques used by the police against some persons attending the rally,

before his release was obtained. When a member of the Station using
State Department cover intervened with the police on behalf of LIEMITY-10,
the film, LIENTRAP, and all the equipment were also returned in tact,
LIEMFTY~-10 had not been. interrogated and had not been formally charged

or booked, . Although the FBI representative and the U.S. Embassy Security
Officer also learned of the incident, the Station does not believe that
this incident has materially effected the security of the Project. Tha
Station, however, is allowing a one month's cooling off period for the

LIENTAAP vehicle and LIEMPTY~-10,

Attachments:

' Project review lian quad)
Envelope with past renewals
Memo Justification of Purchase

of Auto .
Form 680 (in quad) .
Envelope with true namsa

fi


14.90000

. ‘ ‘ “ oy \
» \ \
s
4 PROJECT REVIEW 4
: an
CRYPTONYM__LIEMPTY FIELD CASE OFFICER Quinton N. QUSLER

| ieee
STATION___ Mexico Gi CHIEF OF sranion AC Le wes

Based on the attached REVIEW OF PROJECT LIEMPTY, it is requested that

the Project be renewed for the period 1 December 1959 through 30 November 1960.

SECRETS

a

en SH 60 6-74f/


REVIEW OF PROJECT LIEMPTY

(For the Purpose of Project Renewal)

I. PRODUCT OF THE PROJECT

A. Oliver G. SCANTLING Segment (discussed in relation to project
objectives): . .

an 1, “To collect operational information pertaining to LIMERICK
personnel and physical facilities.'' During the past year SCANTLING has devoted

a significant amount of time to the furtherance of this project objective. Although
other Station operations and personnel are also concerned with vas collection of
operational information about- LIMERICK personnel, SCANTLING's contributions

are unique as to type and complement information received from other sources, Fowr
‘example, SCANTLING is used primarily as the source of information about LIMERICK
physical facilities. He is constantly on the alert for building modifications, con-
struction activities and the kinds of outside services utilized by the LIMERICK
installation. He regularly visits Inez PARADA de Moreno, the occupant of property
adjacent to LIMERICK, for the purpose of obtaining a close view of the interior
grounds of LIMERICK and to debrief Scnora de Moreno about any unusual activities
which she may have-observed. At the present time SCANTLING is preparing a
thorough casing report on the electrical power supply used by LIMERICK and all
other residences and establishments in the same block. This operational information
is intended for KURIOT's use and will show all transformers in the block, electrical
meters for measuring the amount of electrical power used and the precise points
where wires enter each property. Because of his other sensitive activities and
because other operational activities provide adequate coverage, SCANTLING

has been used sparingly for physical surveillances and investigations which might
conceivably impair his future usefulness to the Station. During the time he spent
training Simon D. CLACKETT (ps) in radio controlled mobile surveillance,
SCANTLING did perform some surveillance work at the LIMERICK installation;
however, it was concerned mostly with briefing CLACKETT on dispatching tech~
niques and the procedures used for the control of several vehicles on a surveillance

team using two-way radios.

2. "To collect operational information pertaining to other targets of
opportunity, foreign official installations and personnel of intelligence interest
operating in Mexico."' By far the most important contribution made by SCANTLING
in connection with this project objective has been his support to the LITACIT
operation and just recently actually gained entry to the LITACIT target using a
pretext cover story. During this visit SCANTLING managed to collect highly
valuable operational information about the security of the installation, which has
.added materially to KUBARK.'s knowledge about the-terget. SCANTLING has also
cased and prepared reports on the LITABBY target in anticipation of mounting


-_
SECRE Teer’

. -22-

a photographic surveillance and in initial preparation for a future LINIMENT type
activity. SCANTLING has performed investigations of numerous other Station
targets of opportunity which, depending on their significance, have been reported

-in separate correspondence.

3. "To exploit operational leads through recruitments, debriefings
and eurveillances," This objective was included in the LIEMPTY project because
SCANTLING is used to follow up LIFEAT leads and leads obtained from the LIEMPTY
‘photographic bases. During the past year SCANTLING has investigated a quantity of
leads obtained from the above sources, The information resulting from these in-
vestigations has enabled the Station to maintain current data on the various firms
used by the LIMERICK target and in one instance, Octavio VIDALES (201- )
caused the Station to make a recruitment pitch in an effort to carry out a technical
penetration of the LIMERICK target. Although VIDALES was not recruited, the
Station anticipates that SCANTLING will some day be successful in just this type of
activity. SCANTLING is the Station's principal source for the follow-up of LIFEAT/
LIMERICK and LIEMPTY photographic base house leads as they pertain to the

primary target. —

4. Not covered by a specific project objective but, névertheless, of
significant importance to the Station are SCANTLING's contributions to the overall
Station support efforts. In addition to the extensive training given to CLACKETT,
SCANTLING also prepared a detailed and sophisticated radio dispatch procedure for
use by the LIEMBRACE surveillance team. He devised a superior method for
numbering streets which enables the radio surveillance team to specify a location
without reference to street names and areas. The entire radio dispatch code, when
used properly, practically defies identification as the conversations of a clandestine
surveillance team. From the standpoint of Station security, SCANTLING conducted
an investigation of LIVESTOCK-2 based on two leads which were 30 years old and
reported significant information which contributed to the Station's final decision
to terminate LIVESTOCK-2. SCANTLING's other support activities consist of renting
hote! rooms and apartments in fictitious names, supportim operations such as
LICOOL-12 by performing sentry duty and by serving as a capable and responsible
cutout between the Station and agents from other geographical areas,

5. Although SCANTLING's LIEMPTY objectives can never be completely
fulfilled, it is the Station's opinion that SCANTLING' has made important and valuable
contributions to LIEMPTY Project objectives specifically and to other Station
activities in general, SCANTLING's production, méasured against monetary .
expenditures, case officer time and other intangible factors, unquestionably justifies

his contgnuation as an integral part of Project LIEMPTY,.

B. Raymond H. GERENDE Segment (discussed in relation to project

objectives): po,

SECGRET/


DUES

ry 4

Fito
a ..1, "To collect operational information pertaining to LIMERICK
personnel and physical facilities through the use of photographic base houses,"

_ This continuing objective is carried out by three photographic base houses, -

- LIMITED, LILYRIC and LICALLA. During the project year, LIMITED produced

- approximately 3600 photographs and LILYRIC about 4500 pictures of individuals

- entering and leaving the LIMERICK target. Most of these photographs were of
non-LIMERICK individuals of which only a small, but significant, percentage
could be identified through license plate checks or other types of routine investi-

- gation, The LICALLA base produced approximately 4300 photographs during the year,
Most of the LICALLA photographs were of LIMERICK employees and their families
and have been of considerable value in-maintaining current and accurate listings
of LIMERICK personnel in Mcxico, Tho LICALLA base has recently begun taking
‘motion pictures of LIMERICK personnel conversing in the garden area. These
movies are being forwarded to KUTUBE/D for the possible exploitation of lip

- reading analysis. The LIMITED base, in addition to its photographic assignment,
is also used as thé radio central for dispatching the LIEMBRACE surveillance
team on LIMERICK personnel targeta. All bases make routine reports on the daily
attendance of LIMERICK employees at the installation which facilitates the Station's
reporting on the arrival and departure of LIMERICK personnel, Also, the bases
devote time to reporting the personal associations among the numerous LIMERICK
employees, Some of this latter type information is valuable from the standpoint of
confirming that LIMERICK intelligence officers have a tendency to associate with

their colleagues,

2. "To collect operational information and identify operational
leads pertaining to Station targets of opportunity." This is a broad objective
and one which is contributed to by the LIENTRAP operation, LIENTRAP is used
to provide photographic coverage of important Station targets which do not justify
a more permanent photographic base, During the period under review, LIENTRAP
has been used for the timely coverage of various Central American exile group
activities, the Confederacion de Trabajadores de la America Latina (CTAL)
_-headquarters, several counterespionage targets, the LITACIT and LITABBY
targets and other one-time operations of intelligence interest. The operational
information produced by LIENTRAP is used by the Station for increasing
operational knowledge about a target and, when appropriate, has been incorporated
in separate reports to Headquarters with other information about specific targets,

3. "To provide operational support to Station operations, i.e., rent
hotel rooms and apartments, and conduct counter-surveillances,'"' GERENDE,
because of his area knowledge and operational acumen, is used frequently by the
Station for renting hotel rooms and apartments in fictitious names for use on other
Station operations, He is also the Station's principal procurer of local Post Office
boxes for use as letter drops. This objective pertains entirely to the operational
support of other Station operations and is an invaluable ingredient to the security
of important Station activities.

SECRE TAR

14-00000

4. The production of operational information as represented by
LIMITED, LILYRIC, LICALLA and LIENTRAP is an important adjunct to the
Station's coverage of the LIMERICK tarcet and Station targets of opportunity.
It is the Station's conclusion that the expenditure of KUBARK assets, i.e., money
and case officer time, is justified and that these activities should be continued.

CG. Simon D, CLACKETT Segment (discussed in relation to project objectives):

1, “To collect operational information and to identify operational
leads pertaining to the LIMERICK target and Station targets of opportunity."" Very
little production has been realized from this objective in terms of CLACKETT's
contributions, CLACKETT returned to Mexico in early April 1959 after receiving
surveillance, tradecraft and photography training in Headquarters. He then spent the
rest of April, May and part of June being trained by SCANTLING in mobile sur~
veillance techniques. Then LIEMPTYs 15, 16, 17 and 20 were placed under his
supervision and he began training these agents in the arts of foot surveillance and
mobile surveillance, This team, known’as the LIJERSEY team, is just beginning to
show the excellent effects of CLACKETT's intensive training sessions. Although
LIEMPTY-17 has resigned and the team consists of only four agents, including
CGLACKETT, the Station believes that the team will be ready within the next month
to begin its contributions to the above objective,

2. Based on the training time devoted to CLACKETT and to the LISERSEY
team and the anticipated production during the coming project year, it is the Station's
opinion that this activity should be continued,

iW EXTENT TO WHICH THE RELATED MISSION DIRECTIVE HAS BEEN
FURTHERED.

Project LIEMPTY has provided support, in varying ways, to a majority of

’ Station operations and in this manner has been a contributing factor to the furtherance

of the Related Mission Directive, The project is not intended nor designed to
produce positive intelligence; its sole purpose is to provide a mechanism for the
development of operational information in support of other Station operations.

ia. PROGRESS OF THE OPERATION AND PLANNING FOR THE FUTURE.

aA. Oliver G. SCANTLING Segment:

1, SCANTLING's duties and responsibilities are basically the same
now as they were when the original LIEMPTY project outline was submitted. Since
SCANTLING is the only major factor in this part of LIEMPTY, progress, other than
covered in the above section on production, can be measured only by the fact that
SCANTLING is a year older and has acquired a few more helpful tricka of the trade

SECRET,


14-0000

f

ry

SECRE T/u@gsiaeaR :

-5-

and, consequently, has increased his own operational abilities.

2. Insofar as future planning is concerned, SCANTLING will
continue to devote the’ greater portion of his time to the LITACIT operation. In
addition, he will continue his work against the LIMERICK target, i.e., investi-
gating LIFEAT and photographic base house leads in connection with the objectives
of the LIEMPTY and LIMESA projects. The Station still plans to maintain
SCANTLING ag an independent Station assct free from the responsibilities of super-
vising other agente and operations,

3. SCANTLING will probably continue providing administrative
support to LIEMPTY-3 (now covered under the LICOOL project), but will not be
responsible for the operational direction of L-3 .

B. Raymond H. GERENDE Segment:

1, During the past year the three photographic base houses have

_ been trained in the use of a faster type film (HY-PAN) to facilitate the taking of

photographs on dark cloudy days. One base, LICALLA, has made tests and recently
begun making 35mm color slides using the new fast type Ektachrome film. This
film is now processed in the Mexico Station dark room which heretofore was not
possible. It ia the Station's opinion that a few color photographs of target personnel
will be useful for identification purposes. The LICALLA Base has also, during the
past year, begun taking 16mm motion pictures in color with the expectation that
Headquarters can eventually provide lip reading analysis of conversations taking
place in the garden area of the LIMERICK installation,

2, Other operational progress has been made in connection with
relieving GERENDE of responsibility for the LISERSEY surveillance team. This
mow leaves GERENDE with a sufficient amount of time to supervise all photographic
base houses, LIENTRAP and the outside photographic laboratory, ,

3. Future planning in relation to this segment does not call for
expansion, Rather,. the Station plans to perfect some of the photographic procedures
now in use and to experiment with night photography possibilities using the fast
HY-PAN film with telephoto lens of varying lengths. GERENDE will also concentrate
on increasing the security and communications procedures used with cach base.

C. Simon D. CLACKETT Segment:

1, CLACKETT's assumption of responsibility for the LIJERSEY

» surveillance team has been a progressive step for the development of an additional -
‘ and much needed support ascet,

Although the LIJERSEY team has been in existence
for several years, 1t was only during the past year, with the assignment of


14-0000

SECRET/

-6-

-~ } CLACKETT, that an intensive effort wag made to train the team members and to

, ( place them under the. supervision of a full time team leader, As mentioned above,
CLACKETT has done‘an excellent job during the past few months in getting the
team ready for future operational assignments,

2. The Station plans, during the coming year, to increase the
Strength of the LIJERSEY team by at least two agents and one car, This would
then give a total LIUERSEY complement of six agents and three radio cars. The
Station will continue to take all necessary precautions not to rush the development
of the team nor to give it assignments which are too complicated and too difficult.
It is anticipated that the team will begin some surveillance work within the next
month on targets connected with plans for an expanded Communist Party pene-

tration program.

IV. PERFORMANCE OF PRINCIPAL AGENTS IN TERMS OF PRODUCTION,

SECURITY AND COVER. . . He ft

. A. Oliver G. SCANTLING - As should be expected from a well trained
and motivated agent, SCANTLING's production during the period under review was
excellent. His production is in the category of operational information rather than
positive intelligence and is based on leads and investigations given him by the
Station, He never fails to do a thorough and detailed job on all assignments

given to him, He is an unusually valuableprincipal ag: agent. > There have been no
security problems or developments during the past year in connection with
SCANTLING's assignments. Likewise, his cover is very good and places him

in a position to maintain his work for KUBARK for many years to come.

B, Raymond H. GERENDE - Since GERENDE's marriage in December
1958, his performance has improved to a marked degree, He has become one
of the Station's most dependable agents in terms of promptness for meetings,
completing operational assignments as rapidly as possible and in doing any task,
regardless of how menial it may be. Insofar as the Station and GERENDE know,
his cover with LISTERINE's firm has held up very well. In fact, GERENDE
recently was able to negotiate a sales contract with a customer having a very 7
large sales capacity for the product manufactured by LISTERINE's firm. This,
of course, endears GERENDE to LISTERINE in addition to contributing to
GERENDE's cover employment. The only significant security incident pertaining,
in part, to GERENDE was in connection with LIENTRAP (please see HMMA-13951,

16 October 1959, for details).

Cc. Simon D, CLACKETT - CLACKETT's performance has definitely
measured up to the standards expected by the Station. He has proved that he
is conscientious, dependable and very quick in grasping the details of clandestine

qa
activities. He will undoubtedly continue to improve his personal performance as

SECRET;


14-00000

he gains more experience. ‘There have been no security problems or incidents in
connection with CLACKETT's assignment to this Station, Although the notional

‘cover provided by Headquarters has held up very well during the past few months,

- the Station had hopes of placing him in LILABEL's firm and obtaining Inmigrante
. papers for him. However, for reasons mentioned in other correspondence, this
‘cover arrangement did not work out. The Station is continuing efforts to locate
another suitable local cover job for CLACKETT,

Ve CONTACT AND COMMUNICATION. ~

\

: A. Oliver G. SCANTLING - The Station Case Officer meets with SCANTLING
on the average of three times each week, For regular meetings, a total of eight
prearranged contact points are used alternately with SCANTLING "walking the beat"
and being picked up by the Case Officer in the latter's car. This procedure enables
both the agent and the case officer to check themsclves and to check each other for
possible surveillance, Meetings are generally of short duration, seldom more than
30 minutes, and are held in the car. It is possible for SCANTLING to get in touch
with his case officer by telephone, and vice versa, in case an unscheduled meeting
is necessary. SCANTLING and the Station aré currently working on the details of
an emergency means of contact utilizing SCANTLING's wife's relatives in PBPRIME.
Headquarters will be advised of these arrangements to facilitate contact with
SCANTLING in the event Mexico is overrun by hostile forces and contact with the

Station is severed,

B. Raymond H. GERENDE - GERENDE's Case Officer meeta with him five

times each week, Meetings are conducted in the Case Officer's car using the same
- proceduree as outlined above. GERENDE and his Case Officer have a total of 11

contact points in different areas of the city and generally hold their mectings during
the early morning hours, usually about 0800. Ag in the case of SCANTLING,
GERENDE and his Case Officer are preparing an emergency contact procedure which
will facilitate Headquarters communications with him through his relatives in PBPRIME
Headquarters will be advised of these arrangements just as soon as they are completed.

Cc. Simon D. CLACKETT - The Station Case Officer meets with CLACKETT
on the averageof three times each week. The same type of communications pro-
cedures as used for SCANTLING and GERENDE are employed with CLACKETT.

VI. PERSONNEL,
An Personnel dropped from the Project:
1, LIEMPTY-3 - Now carried under the LICOOL Project.

2. LIEMP1TY-17 - Resigned. Termination report forwarded to
Headquarters, ‘


14-00000
‘

3. LIEMPTY-18 ~ Wife of LIEMPTY-3, Now carried under the ,
LICOOL Project.

B. New personnel not ‘previbusly listed under the Project:

1. LIEMPTY-19 - Position: Support Agent. Wife of Raymond H.

. GERENDE, OA granted 13 August.1959 per HMMW-7988, dated 19 August 1959,

. and amended per DIR=41523, 26 August 1959. See PRQ, Parts land lf, for :
additional information, ¢ ‘1 |... )7 ,

2. LIEMPTY -20 - Position; Agent member of LIEMPTY/LIJERSEY
surveillance tearn, OA granted 2 July 19538 per HMMW-6572, dated 12 July 1958.
’ See PRQ, Parts I and Il, Or additional information. / ©. - *

3. LIEMPTY-24 ~ Position: Wife of LIEMPTY-9. She does not
receive a salary nor does she actively participate in LIEMPTY-~-9's activities, OA
granted 14 September 1959 per HMMW-8099, dated 25 September 1959. 5 7) vo 1.

Vil. ESTIMATED COST OF PROJECT FOR COMING YEAR,

Compensation: (Note: Sufficient funds are indicated to provide for later justified
: raises to agents.)

AGENT U.S. $ PER ANNUM
Raymoud H. GERENDE $ 4,560.00 '
Oliver G. SCANTLING. ; 4,200, 00 ; :
LIEMPTY-4°% 2,000.00 ;
LIEMPTY-5 at $1.75 per-hour 2,500.00
LIEMPTY-6+ — 2,500, 00 ‘
LIEMPTY-7" No Salary -0O- :
LIEMPTY-8° 1, 500,00 ;
LIEMPTY-9% 2,500.00 :
LIEMPTY-10- 3,600.00 , >
LIEMPTY-1L1l- 2,500,00 :
LIEMPTY-12° 1,800. 00 :
LIEMPTY-13- ; 1,800. CO
LIEMPTY-14/ 1,400, 00 !

ee LIEMPTY-15 1,800, 00- :
ws LIEMPTY-16 1, 800, 00°
wor LIEMPTY-19/ : 1,000, 00
s.. LIEMPTY-20. 1,000. 00°
Wilma J. FIORDALISI 4,040.00 ’
Louise J. MACRINO at $2.02 per hour 2,500.00

tty LIEMPTY-24v No Salary -Q-
SECRET


144go000

_ - : a ; . ™ — ™

. ss SECRET,xQumuste~

me

; fae
i -9- °
7 Four additional agents at $2,000 per year $ 8,000, 00
+ : Simon D. CLACKETT -
2 Salary 3 7,750.00
; Quarters . 1, 800,00
. - i “Education Allowance ‘360. 00
OS £ . Travel———.. 1,000.00 10, 910.00 $ 61,910.00
= Operational Expenses:
: Automobiles (4 cars and I truck) $ 3,000.00

(Maintenance, operational expenses,

replacement of parts. }
Travel of agents by commercial carrier . 500,00 3, 500,00

Operational Equipment:
§ , a
t

Purchase of one used auto for LISERSEY

: Surveillance Team $ 3,500.00
: Purchase of one base radio for LIJERSEY
: Team 1,000, 00
-- : Repair and maintenance of radio and
o camera equipment . 1,000, 00
: Purchase of new photographic equipment
i and supplies 2,000.00 7, 500,00
: Real Estate:
i Rent, utilities and maintenance of following
: . safehouses:
*LIMITED $ 2,500.00
*LICALLA. 1,500, 00
: LILYRIC __1,000,00 5,000, 00
*LIMITED and LICALLA rents are returned to :
the Station by LIMOUSINE and credited to Station
miscellaneous receipts. .
Funds for procurement and servicing of additional safehouses,
2, 000,00

post office boxes and renting automobiles

SECRET/#

14-0000

EE pe ee ee pee bee mete ee ee . oe a oo 7
. + : :

fo oO, SECRET/GzEe oo Se,
; ' - 10- :
Exchange conimodities (required as good will gifts) $ 1,000, 00

Damiages (broken contracts, "key" money to obtain

locations in choice areas, rent deposits, etc. } 2,000. 00

- Purchase of information, purchase of identification
documents, payment of bribes, etc,’ 2, 000,00

TOTAL 84,910.00

; : ,
:
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———:
CLASSERCAT ON

SECRET

[ | wARKEO FOR OETING
. NO INDELING FEQUHED :
NDEIING CAN Sf RIOKGED
BY QUALIFIED HQ DER Orar :

€ 1280 ~

: Project LISMPTY expires on 30 Hoveaber 1959. It is requested
that your recommendation for renawal be pouched so that it reaches
Headquarters prior to 1 Bovenber 1959. , .

oc

¥

‘OLIVER 0. GALBOND

SHI/3friexico/i.0.i AL KANS ings

TASS CATON
USE PREVIOUS EQITION

REA ACES FORMS
$i ob sr gaa AND SU SECRET
won AEE CBSOLETE


14.90000

. CARS HER ATION DIFATCn $rmBCn APD Po)

; S P AT CH _ _ Sco, HEY 7899

mEaOGUANTITS Fal 700

TO “TT
i. & Chief of Stution, Yaxico city aa19923 7"
\eboThfl__

bai

{CHECK “X" ONG

me a3" —
MARLED FOR INDEXING

x NO INDEXING BEQUIRED
INDETING CAN BE JUDGED
BY QUALIFIED HQ. DESK ONLY

1413063, 5 Juno 1959

2, . Oa 16 duly.1957, on enendrent to the LIE ITY Project vas
approved granting persission to azend Raymonil H. GURENDE? a contract 1
to provide hin with 4 termination sottlezent of ono month's salery for $
each full yoar that-he works for KUBARK ani to raise his colary effective .
daly 1959 from $4,020 to #4, 560 per your. Ho niditionel funda vere

Tequosted for tho Froject.

!

| 24 A request to eond OS2KIK'9 contract to inclale the benefits
| Listed above has been subnitted. You vill be notified when the contract
|

|

|

fe trreMecn erate en

Tho potiowin eee Paes CALBOHD

has been azended.
2 duly 199 . authorised:

3. A copy ef tho approved Projoot anandment is attached for your
Attachzent Stencd: LN fo - see

inforcation and rocords.
1
RECORDS OFFICER STAMP .
7
|
H

1 = (RyYBAr) ae Le .
@33) < Unt 42)

Distributions R.0. 455) ~ alt — — |

3 = Fexico City Nolo: If duutraction, cite :

2 = WH/T1I Mexico RYBAT onbéns reagons aud coordinate

1 = Subject . if appropriatc.e

2 ~ RI/CRO

WH/TIIMexico/Z.1, SCALETTI: jmh

CLASSHEC ANON

*: " | [3 CONTINUED

ae nna sernen COPY

USE PREVIOUS E
H REPLACES FORM
! S124 $1 2EA AteD StF
WHICH ARE OBSOLETE

DITION,
i$


14-0000

DASPATCRs SPMSCR AND SAT
_ WOfse7$22

MEADGUAttIes FAL NO

DISPATCH

Chief of Station, Mextes City

"MARKED FOR INOEXING
NO INDEXING MEIUIEED

INDEXING CAN BE FUDGED
BY QUALIFIED HQ. 065K ONIT

1. The LIEMPTY Project Anendmant was approved on 30 arch 1959 to
of a contrast agent, Louisa J. MACRINO to furnish

dnelude the addition
adninistrative auppert te ths Frojesi, and aleo to formalise a special
Ro additional funds were approved

i]
under this anendnent. _ |
2. Attached for the Station's informaticn and records is a copy of

eoumitaent made to Oliver G. SCANTLING.

the approved project anondeant request.

3 April 1959

Attackaents
2 pages (KAPOK)

Distributions
3 ~ Hexico City (w/a)
} - WHMailroom (wo/a)
1 + WH/Mamtco (wo/a
fX-Rr (w/a) /

Ja adetite
WH/3/Mexioo/B.I (SCALEITI ings.

USE PREVIOUS EDITION,

REPLACES FORMS

$33 OT TBA AND 5)
OSSOUTE.


14.90000

ho _ . 7 ope
: THANE ATIQNS -

SECRET

A ym Aes ee

201-163574
50-6074/2

FROM : Chlef, -&© A ; :
eg aaa 2 (CHECK x” Onety

NO INDEXING &EQUIBED

Saas 7a eee
A

TREK WARIS, & February 1959 (iA. 3)

le Sdetyuertors agpreciates tha refsreace disgaten waish fors-pted a
yewised “., Zart Ti, cm il & i020 ans requests that “perstscmal apur-val be
esenced far Ris use under the iJ85°7) srocect, in view of the fact tact the
ftaticn plaro to uee Sudjest in survelilanes goprei:ty, his origin: clesrsacd,
qrested on S culy 173%, euthurisos yoo under the -4:- 37 Project. : j

FBS 3s ANOS ger)
wins ARE OSSOUETE S@ar at

Fernts sat Loans Teed -. . a
M os TT eaeeeo por moecings
2, GSREPS nas Wass netifled of Sov jaut’s present “Faat 86.508 Riek tee H
heen requested to ecte the en ae of eryztonme .
Ja is view af the Caet thet the “tistdo- kne oot main any satetaniing
Goomiteonts te W1aH T1620 and tasouse RKO GEANOT: Hpoleet agthoriseas the
reorultzent af & sarvelilanes tear, 16 4a not mece tary to tena forms 20tion $9
dpoluce tupfect ander ko JFojest at tals tiao.
SHQTSE B. e LD |
3 Fedbroary 1959 |
Vietritati-as
3 = sexieo City
\ = bH/exico Chrono
1 = WifeaLLroon |
le hI
a §0-8-74/1
wH/111/Moxieo/:.Therrien: jle
|
|
| |
i
q
|
i
i
}
" TSE PREV OUS EDITION. CLASSIFICATION i
Tem alsS AORMS i
i
4


14-0000

aS ON ToeSP ares COMBO ANT NG

DISPATCH | SECRET | HMMA~12236
1 Chief, WH Diviston ODS BS61S.
we ;  S0-6-74/1

_ “55 pebruary 1999

a a ae TT
ee ad — (etc n ONES

ECT . .
' LIEMPTY/Louise J. MACRINO : MARKED FOEINOEUNG
eee [| Tre inoanine ence.
RETON HGUETO . . : INDEXING CAN 6& JVOGEO
Extend Subjoct's contract and includs under LIEMPTY I By QUALIFED DESK ONLY
eerteiNce\s) . —" ~ ~ ee woes — a en eh —

HMMW-7268, 13 February 1959

‘tng ths expiration of MACRINO's

dirtng the past eight months has been dovoted to typing selected
reports on report mots and doing routtoc noa-seasitive tronslation work,

2 It 1s reqrested that MACRINO's contract be renewed for one year with
the gama salary and other provisions, She cna appropristely be ploced under
the LIEMPTY project as 8 Station support asset, For project administrative
purposes, ehe is being assigned the LIEMPTY/Z3 erypronym. Station belleves
that auffictest LIEMPTY fumua are already avallabls to cover her salary pay~
menta during the rematader of the LIEMPTY project year,

Willard C. CURTIS

 QNO/eps
19 Febxuary 1959
Dictritaton
3 Higa

rom USE PREVIOUS EDIT'ON CASTRATE ° | ;
tenes ro
ws $3 PES ae No a9 SEC RET CONTINUED |

ny Wreche ARE OBSOLETE

=


14-0000

_ ~

)
<0 e ee f wire

CLASS AON . . OISPatCie SHEN ano we , f
DISPATCH noni s
: saabeuiiA Ta RO

'O” Ghict, WH Div ston 201 ~2338 89
wo 50- 6~74/ 1
. 7 ; 201 -229407
; : 7
FROM Cat ef of Station, Mexico City : 11 February 1959

weact

LIEMPTY/Change of Cryptonyms

‘Change cryptonyms as requested below?

HEPERENC ES)

MAPRID FOR INDEXING

NO INDEXING BEQUIRED
WNOEKING CAN BE JUDGED
BY QUALIFIED HO, DLS ONLY

HM MW-7287, 30 January 1959, Paragraph 5.

It ts requested that the cryptonyms of the individuals named in paragraph

five of reference be changed to LIEMPTY/21 and LIEMPTY/22 respectively,

- (ay
Yew CE
ofl
TIGNO/vps .

<9 February 1959

Distribution
3 Has

Dineted tay Cork
«) oo eae ete

g 07 wi ftig

» a wi f6F

use pevious E0OITION CLASSIFICATION i]

‘ EPLACES FCEMS ©

te]

-_ 3128 $1784 AND 5127 CI SONTINUED

vom WHICH ARE OBSOLETE " Ss E Cc R E T “ .
'

et

14-0000

3 February 2959

MEMORANDUM FORs Chief, SI/oPs

FROM + Chief, WHD ;
SUBJECT -_ ¢ LI@FIY Project , a

1. Reference is made to your coxments on the LIE-FTY Project vhioh vas
approved on 16 January 1959.

2. Tho LISUETY Project provides for the development of tho forrer
LIJEASSY surveillenca tenn, tho maintenance of photo aurvalllanoe bases, and
ather suprort facilities for the Mexico City station. In their review of the
Project before it vas an-roved, FI/OPS sugmested that WH Division coneider a
gradual reduction of tha considerable financial and peraonna] cormitments in
thio profeet in viev of the fnvorably developing LIENVOY llatacn rolationship.
FI/OPS bolieved that a amaller, more manageable support group with greater
emphasis on pelectivity of tasks ani targets could well result in more effective

CI and FI productivity.

3. Tha Mexican desk wishes to point out that rather than reducing tho
agsets carried under the LIZ-PTY Project, WD dvelievas that this project is
an oxtremely important one and should receive Headcuarters support. Tho only
other Station aurveillu.ce teams, LIVESTOCK and LIE“PRACE, are both kmoun
to the Mexican suthorities. Therefore LIS ‘FTY remaing the Station's only
secure surveillecce asset. It 1s a very onal] untrained unit at present, but
through this project 1% will be developed into a useable, valuable asset.

4. We are not passing FI/OP's comment to the field, because WH Diviafas
believes that unilateral aasets should not ‘e reduced in favor of liaison.
First, the lfaisen has n-t yet been firmly established. ‘Secondly, oven with a
good ]iaison relationship, the Mexican ssrvicea must be considered anything but
asoure, and certainly could not be trusted with any sensitive o;srationse
Thirdly, because of its proxinity to the United States, and the activity of
hostile Intellivence groups thers, the Mexito City Station ia called uron to
support many yory sensitive orerations vhich we would never wish to reveal to

the Mexican authoritios.

5. Experienca in other latin
rh sige
£ red wae
a pel ‘ Tbe

f of

14-0000

f page 2

: 5. Experience in other latin Anerioan countries vhere lfaison has bean
established, as shovm that many Station's tend to reduce their untlatoral
operations and cayabilities in favor of the liaison, Under these circumstances,
the production of tho Stations heve often been at tha norcy of the Iaisen
service and a change in the attitude of the service tovard cooperating vith
this Agancy has left theso Stations virtually helpless, ‘e certainly cannot
Yrecormand that the Mexico Station reduce any of it's unilateral support assets
in favor of a proposed liaison relaticaship.

J, C, KIO
Chiat, “ED

Distriutions
Orig & 1 - Addressee
1 — WH/Mexico Chrono
1 = Subject File

WH/III/Mextco/CZehrung {ck

yo

14-0000

on

ns
w

Pep atCe $fasOn AND NO

HM 7257

CUASSICATION

DISPATCH d. SECRET

MEADQUARTT RS Ful NO

201-229197
Wao-i

t Chief of Station, Mexico City

Mabe” — (CHECK “x. OND)

ORT . .
. ~ _ Lg INDEXING
: Operational/LIn-PTY Project Approval —| Se seouited
{

INDEXING CAN Sf JUOGED
BY QUAUFIED HQ. DESK ONLY

1. the Field. Project Outline gubmitted with HM’A-11257 was approved
on 16 January 1959 without change, for the period 1. December 1956 through
30 Noverder 1959 for a total ‘of (95,350; $65,580 for the current fiscal
year and $29,800 for fiscal year 1960.

2. An amondment to the original request for project approval wes
guoniited before the original project was approved. This amendment
requested apsroval to include Simon D. CLACK!T? (ps) and Wilma Je FIORVALISI
(es) under the LISFETY Project effective 1 January 1959 and remove then
fron the LIME Project. The funds designated in the original FPO for
the undesignated Staff Agent were used to cover tha expenses for CLACKETT
and FIORDaLISI. Therefore no additional funds were requested for the
project in this amendment. fhe approval on 16 January 1959 included tite
oreject amendment. A copy of the awendment request is being forwarded

for your information and records.

3. Among the Staffs' comments on tho LIEHPIY Project, the following
recommendations were made. KUDSSK suggested that the Case Officer should
work at devising ostensible sources of incomes for the agents which will
stand the serutiny of friendé, relatives and less friendly forces. ,

hl. An anendrent to CLACKET('s contract has been requested to allow
for a cuarters allowances. The educational allowance requested in paracrach
LA of the project amendment was disap-roved because CLACKET? was a Contract
Agent. ‘The Quarters Allowance of $2,599 was turned dow because 1t was too
high in relation to CLACKETI's salary. fherefore, a quarters allovcenee of
£1,800 has been anrroved and will be written inte CLACKSTi’s contract. If,
however, oparational and cover reasons require CLACKST? to rent an apartment
Yerger tran the one he would cormally obtain under his allowance, the Ciief
ef Etation can authorize the extra rent 38 an operational expense which will
pat ba considered as compensation for CLACKETT and therefore not subject to .

federal income tax.

5. lease advise :eadquartero whether you wish to have the cryptonyms
for CLACKSTT and FIORDALISI charged to Liid:PTY's.

OLIVER G. GALZOND

23 Jamary 1959
Attachnent: Project amandment (KXBAT)

Tistribution:
3 - Hexico City KY Por.
1 - KHAtailroom ee ONS
le a
~ Rf se- rr oe oY p-
PL:

ak/3/Mexico/E.1.StaLotilings St-6- 2y Hy

Use eis ENON CLASSINCATION

REPLACES as .

$2 28 $1 20a ANO SED SSCRET C] CONTINUED
Wntct AGE OBSOLETE

LUASSIPNC ATR re Dea USO AN MD

SECRET EMM-A-1125T
TO TagabQ ads AED
wo oC, WE Division -6- fi
. ; FROM oat
_ . Cnt of Statton, Neriee Se ——-
‘ foo ‘SUBIECT
ee Operational [wars rormonina |
: LUMPTY Field Project - outing [x[ NO motiNG requieto
ACHON eau” INDEXING CAN 8 JUDGED
; Pe Beadquarters expeditious eyproval of LIEMPTY By QUALIFIED HQ, DESH ONY
a a, erences ;

MEX! 2339, 29 August 1958
DIR 41362, . 18 September 1958

Attached is ‘the LIEMTY field project outline, a new Station —
Project and several portions

.

support, project which ‘supersedes the LIJERSEY
SE of the LIPSTICK Project.
eo | 2. In addition to approval of ‘-men, Headquarters ig requested to
. ebange the agent cryptonyns as indicated in Section 9 of the attached field
. project outline.
3.- Aleo, it is requested that the Station be advised of the nev

LIEMPYY RI file number.

- (00a pages herevith RECORDS OFFICER ST
Bven pages USC)
The following actioa isy .
4 1 : ; extneriaed: * fo Ke pok
; , . 7
ZROfoor eee a
“ 2 Oct
Distribution
3 - Eqs watchmt
2 - Files

CE
s0-67 7h,

CLASSIFICATION
' SECRET BE [J contowves


14-0000

ye ; —_ SECRET . : Pee

MEMORANDUM FOR: FI/oPs - Projecte Branch HEADQUARTERS CASE OFFICER:

CRYPTOVIN © t LIEPTY nu) 2 aon ald —
DIVISIN =. ':'-—s« Western Hemisphere EXT,:_ 2555
DATS: haar Te: ovember 1958__

STATION t Mexico City . :

eo oY 1, It 41s requested that the LIEMPIY Project be approved for the .
bo , : " period: 1 Decenber 1958 through 30 November 1959 for a total of $95,380.00,

-2, Wi/Personnel has been ‘pequested to locate a Staff Agent to: :
fill-the BAP=8100-slot formérly.under the LIPSTICK Project. This slot i
wAil be transferred to the LIENMPTY Project and will be filled by a ,
person who will be responsible for the directions of the physical sur~

~ veillance team under this project.

PR Sue WD ahd

R. N. Dahlgren, C. I

4 —\
C. W. Anderson, WH/FI

Attachments:
FPO (in quad)
Form 680 (in quad)
Table of Vehicular Allowance
Justification for Purchase of Automobiles . ;
Envelope with true names : ‘ -

SECRET | 50 “6-4 ly

!

yet to Hamma “(12 s7


14-0000

PROJECT OUTLINE .
. a STATION Nexico 2 ote, CHIEF OF SATION

1. The attached project outline is presented for eyproval for the }
- perdod 1 December 1958 through 30 Joveaber 1959. .

®. Headquarters is requested to select a suitable contract or Staff
Agent to replace Raymond H. GERENDE az leader of the LIJERSEY surveilisnce
team. From the security standpoint, it is essential that GERENDS be relieved
we eee of this responsibility. The individual selected by Headquartera to fill the
. nh. slot formerly occupied by Wilfred 0. CLOWER (BAP-3100) should have hod
Tet experience in surveillance operations and should epeak Spanish fluently.

cs cory
et 6 ~ PHY,


14-0000

vo aa ' HMM-A-11257
seaE-1472
=2eo :
. PROJECT OUTLINE
CRYPTONYN _LIENPrY .

PART I

“1. Area of Operations

fhe general area of operations will be Mexico and the specific area will de
Mexico, D.F., Mexico.

2. Purpose

The purpose of thie project is to-provide a mechaniem for the development of
operational information in support of other Station operations. This purpose is
in conéonance with the Related Mission Directive for Mexico,

3. Background

As the reviewing authorities will be aware, this project includes several

operationa which were formerly carried under Projects LIPSTICK and LIJERSEY.

Partially aa a result of the June 1958 LIPSTICK compromise, when three surveillance
tean members were apprehended and placedin custody by the Mexican Police, and
additionally as a means for the orderly administration of assets, this new project

is submitted.
There follovs below a@ background aketch of the separate support assets, excluding

-@etatls concerning personnel, which will be discussed later {n the outline, which the

Station proposes for inclusion in LIEMPTY:

LIMITED - The LIMITED Base is located in such a position across the atreet
from the LIMERICK installation that photographs can easily be made of persons enter-
ing and leaving the LIMERICK main gate. These photographs are later developed and
printed by LIEMPTY-4, then returned to the LIMITED operator for the proper annotations.
After receipt of the photographs by the Station, the Case Officer reviews them for
LIMESA leads, newly arrived LIMERICK personnel, local and other nationals of poasible
operational interest and PRPRIME citizens who have visited LIMERICK.

KUBARK owns the property housing the LIMITED Base, having purchased it in mid-
1955; however, the ostensible omer is LIMOUSINE, to whom LIEMPTY-6 pays his rent

eech month through LIMOUSINS's bank.

LIMITED, with LIEMPTY-6 as base house operator, has been operating for nearly
three years and has not yet been involved in a compromising security situation. Prior
to April 1955, when Headquarters authorized the purchase of the LIMITED Base, the
Stution rented the Bage and used LIPSTICK-7 (later LIMESTONE-6 in LIFEAT Project
and now terminated) as the operator. This arrangement was in effect for about two

years.

fu.

gos lees
ty we

aaa 1h

2


14-0000

, us

‘target of interest (usually a residence or apartment building) and the photographer

mo

: ; . HMM-A-11257 *
XAPOR-1472
al
° Lrgvarc = , This Base ‘has been in operation for sbout two and one-half yeara eee!

and is located: da an apartzient building acros 6 the street from the LIMERICK
~inetallation. As inthe case of the LIMITED. Base, LILYRIC takes photographs of 4
‘peraons entering end leaving the main gate of the LIMERICK installation. The - 2 . .
~ LELYRIC photographs. are ‘Handled in the Sane wanner as the LIMITED pictures. In ”
additiod to taking photograplis; the LILYRIC cperators also prepare daily logs on the?’

Sef esich-LINSRICK exployee,.._ ‘Yecord the license plate numbers of most cara’

:_ carrying people to and ‘from ‘tie LINSRICK installation, and prepare an observation te

‘tary ‘on: all-target personnel: seea each day. (This peraits the Station to tell when
a ter t personality is out'of town or not working for sone other reason.

The ‘EILyRre Bape-was originally acquired and made operative to provide for
_continudus coverage of the target in the event LIMITED is ever compromised. This
ig still the primary value of having two bases cover the same portion of the target.
LILYRIC is compartmented froni LIMITED and with the possible exception of GERENDE
could probably weather any security flap involving LIMITED. Obviously, there is
“some duplication in the vork of LIMITED and LILIRIC; however, the insurance value

of having two basis is quite apparent. -

LILYRIC bas been operating for about two end one-half years and insofar ag
the Station knows, no coupromising security situations have arisen.

LICALLA ~ The LICALLA Base is located in a position where photographs can be
taken of people within the LIMERICK garden | area. In addition, the operator of the
‘LICALLA Base submits weekly reports cn LIMERICK construction work, daily logs show-
ing when a target individual was seen that day, and reports showing the association
of target individuals with one another, LICALLA photographs are processed and handled :
in the same manner and by the people who handle the LIMITED and LILYRIC pictures. 1

. The LICALLA Base was acquired and operations began about two and one-half
yearo ago with ‘the primary purpose of obtaining additional operational information
concerning LIMERICE personnel, and operational leads which could be exploited for

. the physical penetration of the LINSRICK installation. Approximately one year ago aan

the LICALLA, Base was purchased by KUBARK through LIMOUSINE. LICALLA will probably
remain et its present. Aocation and will continue to subait photographs and reports
of the same type as are now being submitted. Other than the fact that LIEMPTY-9,
the LICALLA operator, is the brother of former LIPSTICK-47, no security problems are

" eurrently known to the Case Officer. However, reports from LIPSPICK2 12 and 30, the :

local police, the attorneys involved in the case, the foreign embassy concerned and

the LCFLUTTER tests give no indications that LIEMPTY-9 was evar mentioned during : :
: {

the LIPSTICK flap.

LIEWTRAP - This ig a panel type truck equipped with cameras, telescopic 4
lens and other types of photographic equipment. It has been used during the past i :
two years as an investigative asset. The truck is parked about 75 yards from a

in the rear of the truck photographs in@ividuals or things of interest to the Station.

LIENTRAP is a valuable asset for any station to have and has enabled this Station to
get pictures of individuals which could have been obtained in no other way. LIEMWPTYe-

iO and 12 operate LISNTRAP. :
oy . ot _ G- 24f ;

ad


14-0000

discussed, LIJERSEY consists of a foot surveillance team with three members, LIEMPTYs- ca

~~.

‘ HM-A-11257
. ne FAPOK-1472

/ ~The major ‘gecurity threat to LIENTRAP ia the fact that it has been operating
for about two oe aaa p all parts of the city and should goon de replaced by a truck

Outline.

. LIJERSEY = 1 This is ‘presently an approved project; however, it is believed
advisable for ai for administrative efficiency to include the LIJERSEY assets within the
framework of the LIEMPTY Project. Other than LILYRIC, which has already been

Tee ca rarer

15, 16 and 17. LIEMPIYs om and 16 have been employed for about one and a half years
end LIEMPTY-17. for” ‘about cone year. They have not developed into as competent a surveil-
lance team as the LIPSTICK team Was and probably never vill become as good. The

. LIJERSEY team has dbeen“ise’ mostly for stationary gurveillances and observations of

people of interest. LIEMPTY-17, liowever, has also been used as a pretext investigator.
He has excelled at this type of work and the Station continues to use him in this
capacity. The Station has been reluctant to use the LIJERSSY team as much as it

could have been used because of the closé association of the team with GERSNDS and,

in turn, GERENDE's knowledge and work on LIFEAT and the LIPSTICK surveillance team.

' The Station plans to recruit several agents of a type and social level more suitable

for all types of surveillance work than’ the present LIJERSEY team.

Oliver G. ACANTLING - SCANTLING has been asgociated with KUBARK for several
years in a number of different capacities. He was originally used as a member of
the LIPSTICK surveillance team and later was head of the same team. He has been
used to train new agents in the techniques of surveillance and investigation, to
acquire office space and apartments for the Station's operations and to conduct
investigations and make recruitment approaches to individuals of operational interest
to KUBARK. SCANTLING is currently being used by the Station as an investigator of
LIMESA leads andis atill actively pursuing the LIMESA/MKLIGHTING operation.
SCANTLING also maintains regular contact with LIEMPT{-3 and monitors his elicitatica
effort against the LICOOL-6 target. In this connection, both SCANTLING and LIEMPTY-3
meet regularly with Doris M. KILLGO for operational guidance. (Note: Please see
the LICOOL Field Project Outline for additional details on LICOUL-6)..

4, References:
a. LIPSTICK Project Outline and operational papers.

‘b. LIJERSEY Project Outline and operational papers.
ec. Dispatch to follow in next pouch, Subject: Review of Raymond H. GERENDE's

operational activities.

5. Objectives:

Oliver G. SCANTLING's activities:

a. To collect operational information pertaining to LIMERICK personnel and
physical facilities.

b. To collect operational information pertaining to other targets of


pat

| HMM-A-11257
MAPOK-1572

opportunity, foreign official 4 installations ‘and personnel of intelligence interest
operating in Mexico.

“ . -. @+- To exploit operational leads through reerultnente, aebriefings end sure
veillances.

o>’ Raymond 8. GEREDE' a activities:

4, To collect operational informatica pertaining to LIMERICK peroonnel end
physical faciiitica through the use’ ef Photographic page houses,

; e. To coliect operational information and identify operational leads pertain
TFB. ing to Station targets of opportunity.

a 2. To provide operational support to Station operations, 1.e., rent hotel
rooms and apartments, and conduct counter-surveillances.

Staff Agent's activities:

g- Yo collect ‘operational ioformation and to identify operational leads
pertainirg to the LINMEPICK target and Station targets of opportunity.

6. Targeta:

Oliver G. SCANTLING - The primary target is, of course, the LIMERICK installation
and personnel. However, SCANTLING devotes most of his time to following up LIFEAT
leads which ‘pertain.to services provided the LIMERICK installation by individuals
and firms, 6.g. construction mgineers, Tieor Waxing firms, safe experts, furniture
makers, interlor decoratora, etc.. Td ‘an extent, ‘these are considered targets of
opportunity and it would be impossible to list spécifically what future targets
will be available. One specific target which SCANTLING ia concerned with is the
oceupalit of the LICOOL-6 apartment; however, LIEMPTY-3, whom SCANTLING handles,
should more correctly be given credit for information produced on this target.

Raymond EH. GERENDE ~ LIMITED, LILYRIC and LICALLA all have as their target
the LIMERICK installation and personnel, plus any local nationals and PBPRIMERS
“ . who visit LIMERICK, LUENTRAP is concerned with targets of opportunity and follow.
: up investigations on operational leads obtained from other Station and Headquarters
sources. The same targets apply to the LIJERSEY surveillance team as apply to

T Tasks:
Field Case Officer - Quiuton N. OUSLER.

a. Supervise and direct the operational activities of Raymond H. GERENDS,
Oliver G. SCANTLING, and the staff agent.

b. Provide dance and maintain ervisory responsibilit; for all agents
under GERENDE; SCAMILIMG and the stafr agent. 7


7 B-A-34257
Kaport-1472
be ..

te Ce Coordinate- support requests from other Station Case Officers which
involve either GEREHDE, SCANTLING. or the otaff agent.

‘ a Process (indexing, traces, etc.) the photographic end other information
from the LIEMPTY outeide Photographic assets. .

¢@.: Prepare operational and ‘administrative correspondence pertaining to.

4.

. - a
Principal agent - Gliver G. SCANTLING:
a. Perform one man surveillances end investigations t identify individuals
of operational interest.

b. Perform comprehensive anddstailed casings of installations of interest
to the Station and Headquarters.

c. Provide administrative support and seme operational guidance to
LIEHPTY-3. -

a. Recruit individuals which have p!
installation (basically in support of LIMESA).

Spot prospective agent candidates for possible later use by the Station.

cal accesa to the LIMERICK

eo

Agent - LIEMPPY-3

&. Cultivate and elicit information from the occupant of the LICOGL-6

apartment,

b. Where possible, broaden his contact with the LIMERICK people for the
purpose of obtaining information concerning LIMERICK comercial matters in Mexico
and to identify LIMERICK personuel who, may be susceptible to defection and/or
recruitment in place.

¢. Support the LICOOL-6 technical operation by operating the recording
machines and occupying the monitoring base as hia family quarters.

Prineipal Agent - Raymond EH. GERENDE

a. Manage and act as the Case Officer's principal in the supervision of
LIMITED, LILYRIC, LICALLA, LIENTRAP, LIJERSEY surveillance teams (until relieved
by vew staff agent) and LIEMPTYs 4 and 5.

b. Set up end maintain proper clandestine comsunications procedures vith
all agents under his supervision.

c. Review periodically all aspects of his operations for possible security,
personnel and management problems.


EMN-A-11257
1 KAPORS1AT2 tm

a. Prepare monthly activities reports for all Projects under his supere
wision.

- e. Perforn iavestigations on targets of opportunity as directed by the
Case Officers: .

f. Untila replacenent is located, oni tor and process the LIFSAT BCMORNING
acd LIFEAT Cuban Exiles taps.

LIMITED Base House Operator - LIEMPTY-6

ae Photograph individuals of interest who enter and leave the LIMERICK
installation through the main gate. :

b. Prepare logs and ather reports on individuals of intereat who visit
and/or work at the LIMERICK installation.

e. Maintain the cover of the Base as a family residence.
LILYRIC Base House Operators - LIEMPTYs 13 ond 14
Same tasks as the LIMITED Base House Operator
Agent - LIQWTY-12

&. Serve as a cutout between GERENDE and LIEMPTY-13, the LILYRIC Base
Eouse Operator.

dD. Insure proper tradecraft procedures are employed by the LILYRIC base.

ec. Spot and report on individuals who would make suitable agent recruits
for the Station.

LICALLA Base House Operator - LIEMPTY-9

a@. Photograph individuals of interest who appear in the garden area of the
LIMERICK installation.

db. Prepare logs and other reports on individuals of interest who visit
and/or work at the LIMERICK installation.

c. Maintain the cover of the Base as a family residence.
LIENTRAP - LIEMPTYs10 and 11

a. Perform photographic and other investigative assignments as directed
by the Station through GERENDE.

4


14-00000

\ HMM-A-11257
a —~KAPOK-14T2

. b. Protect the security of LIRVTRAP and report all operational security
developments involving the operation. : ;
Btaff Agent (to be selected by Headquarters)
a. Assume operational responsibility of the LIJERSEY surveillance
team fron GEREHDE, foe! : :
bd. Develop the present LIJERSEY asséts into a useable surveillance asset.

ft

cn ee Train new surveillance team nembers in the art of discreet physical
surveillance, ineluding static, foot and mobile methods.

a. Spot, end where feasidle, recruit | new eurved lence teem membera.

LIJERSEY Surveillance Team - LIEMPTYs 15, 16 and 17

, a. Perform surveillances, pretext investigations and other investigative
assignments as directed by the Station through GERENDE.

bo. Strive constantly to improve their individual and collective iavestigative
techaiques.

Support Agent - LIEMPTY-4

a. Process and print film fron LIMITED, LILYRIC, LICALLA and. LYENERAP.
Support Agent - LIEMPTY-5 a , _

@. Translate and type material as received from the Station through GERENDE.
8. Coordination:

This project will not require coordination with other feld stations.
9. Pereonnel:

a. Paseudonyus and cryptonyms

(1) Raymond H. GERENDE, aka LIEMPTY-2 (formerly LIPSTICK-20),
Position: Principal agent - (annews Aesat

(2) Oliver c. SCANTLING, aka LIQ@TY-2 (formerly LIPSTICK-19), f
Position: Principal Agent Oa. CUmreaer offronve iste a ad ar

(3) LIEMPTY-3 (formerly LIPSTICK-32), Position: Agent.
(4) LreMpry-h (formerly LIPSTICK-36), Position: Support Agent


be

HAM-A-11257
5. POR-1472

(5) LIErr-5 (formerly LIPSTICK-h0), Position: Support Agent

(6) LIROTY 6, {formerly LIPSTICK-14),, } Popition:, Agent, LIMITED Operator

FILE Mie

(7). Lomerx-7 (formerly LIPSFICK-27), vite of LIENPTY-6.
(8) LURPTY-8 (formerly LIPSTICK-29), son of LIENPIY-6, Cate ¢earew

(9) oReTT-s tramoerty LIPSTICK-§), Position: Agent, LICALLA operator.
(10) LIENPTY-10 (formerly LIPSTICK-2), Position: Agent, Photo truck operator.

BAA Gerrard FUP eS rPhy 6
(11) LIEMPrY-11 (formerly LIPSPICK-24), Podition: Agent, Assistant photo
. truck operator.
(12) LOEMPrY-12 (formerly LIJERSEY-5), Position: Agent, cutout and spotter.

“425 Uh,

“(13) LIBO@TY-13 (formerly LIJERSSY-2), Position: Agent, LILYRIC Base House
opera’ .

(14) LIEMPTY-14 (formerly LIJERSEY-12), Position: Agent, Assistant LILYRIC
Base House operator. Wife of LIEMPTY-13,

(15) Reaqpabicnees (formerly LIJERSEY-4), Position: Agent, LIJERSEY surveillance
A

(16) LUENPTY-16 (formerly LISERSEY-8), Position: Agent, LIJERSRY surveillance

team member.

(17) Lreerry-17 (formerly LLJERSEY- 13), Position: Agent, LIJERSEY surveillance

. team meuber.

Personal Data: ;

Personal data on all personnel Listed above have previously been provided

” to Feadquarters, either in projects LIPSTICK or LIJERSSY or in each intividual's
PRQ, Parte I and I.

Operational Approvals:

Raymond H. GERENDB, QA granted 1 29 Yebruary 1955, per HMS-2067,
dated 1h March 1955. ¢- 2-77

(2) Oliver G. SCANTLING, OA granted 2 December 1954, per EMMW-1894,
dated 29 December 1958. ¢- KOT

(3) LIEMPry-3, OA granted 10 August 1956, file number C-15955, per
Rew-3412, dated 24 August 1956.


HMN-A-11L257
APON-1472
=10-

a) Lmmerr-h, QA granted § Octoder 195, file nuaber C-51672,
an per EMH. 3593, dated 12 Octoder 1956.
(5) LIEMPTY-5, GA granted & Nay 1957, file mmber C-56462, per
. HOGI-4521, 15 May 1957.
(6) LIR@TY-6, OA granted 23 Septeader 1954, per DIR 19215, 30 Septeader
_. 19h. C- ayers
(7) LIEWTY-7, oA granted 11 Octeder 1955, per RAEI-2510, 2 dated 25
October 1955. 6. ave 7S~
(8) LIEMPTY-8, OA ereated 2s October 1955, per Mew.2522, dated aT
October 1955. oly
(9) LXEMPTY-9,PQA granted 27 Decesber 19%, file number C-36699, per
EMM-3940, dated 10. January 1957. G4 Gar os erdh P87
(10) LIEMPIY-10, OA granted 10 April 1953, per ERW-S5T, dated 23
April 1953. ¢ : sox?
(21) LYEMPTY-11, QA grented 14 Septeuber 1955, per HMOW-2542, dated
4 October 1955, 2. ¥/e 3/7

(12) LIEMPTY-12, OA granted 18 July 1955, per BMil-2364, dated 22 July,
1955. C- 3¢H5¢ .

(13) LIEMPTY- 13, OA granted 9 May 1956, per ROH 3113, dated 82 May 1956.
a -
(14) -LIEMPTY-1k, OA granted 16 October 1957, per EMMW-5402, dated
29 October 1957. C~ Gired
eat (8 Lacan 7 OS

| (15) LIRMPTY-15, OA granted 30 July 1956, file mmbar C-h828h, per
ENMH-3359, dated 8 August 1956.

(16) LIEMPry-16, OA granted 14 February 1957, file number C-54098,
per HMMW-4124, dated 20 February 1957.

_ (27) LIEMPTY-17, OA granted 23 September 1957, per Mati-5262, dated
1 October 1957. ¢ .G¢asry
10. Cover: .

a. Rayviond H. GERENDE is the only LIENPTY agent who has cover provided by
KUBARK, GcRENDE ostensibly is a salesman for LISTERINS's firm. However, he
seldem spends ary time pursuing hie cover occupation, since his operational
activities are so numerous and time conmming. GERENDE's cover with the LISTERINE
firm was arranged by the Station and, eo far, has been adequate for GERSNDS's needa.

:
+


HMH-A-11267 |
-KAPOR®1472
«lle . '

“". Be, The Case Officer, @ainton N..QUSLER, is known only to GERENDE and
SCANTLING. It would not’be possible to develop a suitable cover story that
vould apply to the frequent meetings between the Case Officer and the Principal
Agenta; therefore, meetings are clandestine and are wually conducted in the

Case Officer's. cari

_ ground information as to how. "we met and how our friendship developed, to be used
ia the event’ *the..Case Officer" 4e apprehended with either of the Principal Agents.

“@. None of the status cover occupations of any of the LIEMPTY agents id
completely compatible with his operational activities. Action cover stories are
davided upon before cach assignment and devised to complement each agent's status
cover as closely as possible. Base House operators, of course, generally conduct
operational assiguments within the confines of their quarters; consequently, the
need for action cover stories is reduced. Appropriate cover stories exist between
GERENDE and the agents in his network and between SCANTLING and LIEMPIY-3.

11. Contact and Commmication:

Appropriate clandestine coummications arrangenents exist between the various
echelons of LIZMPTY. At the present time these plans. consist of regular and
rapid-non scheduled (emergency) means of contact. GERENDE and SCANTLING are both
_- in the process of preparing detailed written communications plens for their
"- yespettive agents which include complete regular, alternate and rapid-non
achetuled meeting arrangements. Provistons will also be made in these plans for
oral recognition signals and physical bona fides that will enable a person unknown
.to the agent to contact him should the need ever arise. The Case Officer ia cur-
rently working on a Warning System of Communications which will permit the ex-
peditious exfiltration of GERENDE and SCARTLING frou Mexico should a security
situation arise which would necessitate this. j

12. Control and Motivation:

&. Control - All LIEMPTY agents are local nationals. GERENDE and SCANTLING,
both of whom spent a great deal of their childhood years in PBPRIME and still
have relatives Living in PBPRIME, are in many respects more pro-PBPRIME than
many PRPRIME citizens. In the: “past, . both GERENDE and SCANTLING have evidenced
_& high degree of loyalty to Matthew S: DINGLEY, their former Station Case Officer,
and appear to be devoting tliat same loyalty to the present Case Officer. The
: eontrol over GERENDE and SCANTLING stems directly from their pro-PBPRIME beliefs
“and their personal loyalty ‘to their past and present Case Officers. The control
over other LIEMPTY agents ia based in part on pre-PBPRIME attitudes and on the
financial remuneration and good handling they receive@ from GERENDE and SCANTLING.
Realistically, control over LIEMPTY agents is based on mutual understandings and
confidence among individuals and should any agent decide to denounce PRPRIME or
_ KUBARK, as the case may be, there is not much that the Station could do.

b. Motivation - With the exception of GERENDE and SCANTLING, whose primary

motivations are ideological, financial compensation seems .to de the db:
motivational factor surrounding LIEMPTY agent ts. ° © the basic

However, ‘suitable cover stories have been developed between the
Case Officer and SCANTLING and between the Case Officer and GERENDE involving back~ -

14-00000 yy

13. Equipment and _ Other Support:

, earried under -the LIPSTICK and LIJERSEY Projects.

i ae
sial-equpment-or other support-ie—required-at thts—times
use hieretp es f 6a Ue whack, Poyee bPaiyiy- 9 £09 C79 IE EF:

lk, Timetadler

The agents and cperatious ‘listed in this project have previously been
It is the Station's undere

standing that the LIPSTICK Project was extended to 1 December 1958 to give the:
Station tine to subait LIEMPIY. The MISERSEY Froject expires in 1959 or upon

approval of LIEMPTY.

' The ‘Exmerr Project F represents a wajor ‘operational rupport ascat of the
Mexico City Station and, as such, will run for an indefinite periodd tine.


. ae : r
L,
WO-A-11257
WPOK-IkT2- -
> i .
PROJECT OUTLINE .
PART IIT
15. Estimated Cost:
Compensation:
(Note: Sufficient funds are indicated'to provide for later justified raises
to agente.)
Agent US $ Per Annwa
Raymond H. GERENDE (bao Ar per hte rot) 4 60.00 -
Oliver G. SCANTLING 4,200.00
~ LIEMPTY-3 2,000.00
LIEMPTY-4 2,000.00
LIEMPTY-5 @ $2. 6 per hour 2,400.00
LIPMPTY-6 2,400.00
LIEMPTY-7 Wo Selary - «
LIEMPTY-3 No Galery . -~-
LIEMPTY=9 2,000.00
LIEMPTY-10 : 3,600.00
LIEMPTY-11 2, 500.00
LIEMPTY-12 1, 800.00
LIEMPTY-13 1, 800 .00
LIEMPTY-14 1,250.00
LIEMPTY-15 : 1,600.00
LIRPTY-16 1, 800.00
LIEMPRY-17 1,800.00
Bix additional agents @ $2,000 12,000.00
Staff Agent (to be selected by Hgs)
Selery $8, 330.00
Quarters — 2, 500.00
Education Allowance "640.00
Travel ; x8 1,000.00 i
Shipment of 2,000.00
; 14,470.00
Sub-total 62, 380.00
Operational Expenses: | : :
Autanobiles (3 autos & 1 truck) 2, 500.00
Maintenance, operational expenses, ’

_ replacement of parts.
Travel of seente by comercial carrier 500.00
Sub-total 3,000.00


HNL A-11257
KAPOK=15:72
wlhe

Operational: Bquipment:

Repiscemient of 2 LIJERSEY autos (MV-2148 & MV-21%7) 6,000.00
Replacement of SCANTLING's QP auto (HV-2041) 3,000.00
Replacement of LIEWIRAP (HV-2138) 2, 500.00
Purchase of 1 used auto for LIJERSEY surveillance 4,000.00

Purchase of 3 ‘two-way radios & one base radio for 2, 500.00
LIJERSEY team

Repair and maintenance of cameras and radio equip- 500.00 -
nent

Purchase of now photo equipment and supplies 2, 500.00

Sub-total 22,000,00

Real Estate:

* LIMITED 500.00
SLICALLA 1,000.00
* LILYRIC lL. 1,000.00
, Sub-total 2, 500.00
Funds for procureuent and servicing of additional safehouses,
post office boxes, or renting automobiles 2,000.00
Exchenge commodities (required as godwill gifts) 500.00
Damages (broken contracts, “key” money to obtain locations
in choice areas, rent deposits, etc.) 2,000.00
Purchase of information, purchase of identification documents,
payment of bribes, ete. 2,000.00
TOTAL $ 95,380.00 U.3,
*LIMITED and LICALLA rents are returned to the Station by LIMVUSINE
~ and crediteg to Station miscellaneous receipts.
. \ es t
ee st-t-74/

Rent, utilities and maintenance of following safée-
houses: Per Annum


¥p-00000

DM-A-11257
KAPOK-1472

-15<

16. Special Problens ond Comms tments:

a. Ho camitments, expreosed or implied, have been made to any LIENPIT
agent by the present Case Officer, except as stated in the project outline. and/or
4n the contracts of GEHZADE and SCARTLING

b. In the event of compromise to the local government of any LIEMPTY ageat,
KUBARK is morally responsible for doing all within its power, and within the
limitations of coeur a ty, for resettling or otherwise taking care of the LIENPTY
agents. , .

c. No spectal benefit coumitueats Inve been made to any LIEMPTY agent except
those contained in the contrects of GERENDE and SCANTLING,

a. <A change of government or political conditions in Mexico will not affect
this project. It is ea unilateral effort on the part of KUBARK.

SO- 6 ~ 24),

: SECRET .

' . . THEN FLED On

SUBJECT AND PROJECT FILE REQUEST
AND FIELD NOTIFICATION OF ACTION

{Stotion/Base)

ITEM 10-ENTER OLD TITLE WHEN AMENDING A TITLE. CITE
ANY FILES. SUCH AS 201 OR PROJECT FILES THAT ARE RE-
LATEO.TO THE-FILE COVERED BY THIS REQUEST. ITEM 10 MAY
ALSO BE USED TO'GIVE REASONS FOR THE ACTION BEING RE
QUESTED. TO IDENTIFY THE TYPE OF MATERIAL TO BE PLACED
iN A FILE OR TO MAKE OTHER EXPLANATORY REMARKS.

COMPLETE (TEMS t THROUGH 12 .

ITEM 3-ALL FILE TITLES MUST BE STERILE SINCE THEY WiLL
APPEAR ON THE FIELD COPIES AND ON MACHINE LISTS
(ITEM 6~4Lt REMARKS MUST BE STERILE

ITEM 7 AND 8~-USE FIRST THREE LETTERS OF OISPATCH SYM-
GBOLS FOR FIELD STATIONS ‘ANDO LIST HEADQUARTERS ELE-
MENTS ACCORDING TO ESTABLISHED NUMERIC CODES

INFORMATION CONCERNING FILE
CODE «FILE) NUMBER

ITEM 11 ~A RECORDS OFFICER MUST SIGN ALL FILE ACTION RE-
QUESTS. CONSULT YOUR RMO ON ANY PROBLEMS THAT ARISE.

TYPE OF FILE
COUNTRY NUMBER

CT] SUBJECT {x] PROJECT 50

3 FILE TITLE (SPECIFIC SUBJECT? (PROJECTS LIMITED TO 15 SPACES)

KDFACTOR

ACTION REQUIRED
5

DISPOSITION
OESTRUCTION RECOMMENDED
THRU (OATES

ANALYSIS ACTION

6 REMARKS CFOR FIELD OSTRIBUTION)

FORMERLY LIEMPTY

8 INTERESTED HEADQUARTERS DESK I LIST ACTION OESK FIRST?

50

7. INTERESTED STATIONS (PROJECTS ONLY?

HMM

4

FILES ACTION _.

HOLD IN PREPARE FOLOER ANO
seenes | — | ememene “vee

10. COMMENTS UNCLUDE SPECIAL HEADQUARTERS ROUTING INSTRUCTIONS!

CHARGE PERMANENTLY TO
(OFFICER & DESKE

LB) ENCORSEMENT 12 COORDINATION

SIGNATURE OF DRANCH/ODESH R. O. SIGNATURE OF BRANCH/DESK & O
. (WHEN APPLICAQLE)

EFFECTIWE DATE

050 } - 006 074/01

OBSOLETE PREVIOUS . : .
java 812 TIONS SECRET 38 1-8 cone

EDIT!
12-63 wae ee Lot


SECRET . a“
Whee fitted tnd ©

CASE FILE REQUEST

bate

Tes” RI/ANALYSIS SECTION 24 Vateber 1958 |
(Requester Nome} - BUILDING. ROOM NO. TELEPHONE
rou: Charlotte Zehrimg oer Barton 2120 2758
lL setine . 4 ACTION REQUESTED .
. : ~ . OPEN Pe
LIEMPTY/ Mcwel pr Vb aes —
y AMEND FILE
a AS INDICATEO,
. CLOSE FILE
x | ree an/rrT/Mextos
3. CATEGORY AND NUMBER X | permanent cearceour

2. COUNTEY AND NUMBER
TO (DESK).

PREPARE PILE FOLDERS
AND SEND JQ SEQUESTER,

6 Operational

i“) (Mexico)

3. COMMENTS: [inctyse brie! description of Ale ‘or project)

Pheto and physical surveillance coverage and suppart for statlon,

& FOR RI USE ONLY

2. RAD STATIONS)

4. APPROVAL

REQUEST APPROVED:

ENDORSEMENT

‘Aa DORSE

THIS REQUEST SATISFIES RECORDS: PSQUIKEMENTS.

Zs

BI/ANALYSIS

wt Lage eS

foam no. Bi2 Bee reeoes : SECREY

Rortioms, ©

EFFECTIVE DATE


